What Is Form 22EF — Evidence of Funds Addendum in Washington Real Estate?
Form 22EF is the Evidence of Funds Addendum used in Washington real estate offers to verify that a buyer has sufficient funds to complete the purchase.
Sellers often want proof that a buyer can actually close the transaction. Form 22EF allows the seller to request documentation showing the buyer has the required funds for the down payment, closing costs, or an all-cash purchase.
This form is commonly used in competitive markets or when the buyer’s offer includes terms that require significant available cash.
Form 22EF is typically attached to the Purchase and Sale Agreement (Form 21) and becomes part of the contract once mutual acceptance occurs.
Video: Form 22EF Evidence of Funds Explained
Why Sellers Request Evidence of Funds
When reviewing offers, sellers want to know the buyer has the financial ability to close.
Evidence of funds can help confirm the buyer has:
- sufficient down payment funds
- money available for closing costs
- funds required for appraisal gap guarantees
- cash available for an all-cash purchase
Providing this documentation reduces the risk that the transaction fails due to financial issues.
What Counts as Evidence of Funds
Form 22EF typically requires documentation showing available funds.
Common examples include:
Bank statements
Checking or savings account statements showing available cash.
Investment account statements
Brokerage accounts or other liquid investments.
Verification from financial institutions
Letters from banks or financial advisors confirming available funds.
Sensitive account information is often partially redacted before sharing.
When Form 22EF Is Commonly Used
Evidence of funds requests often appear in offers when:
- buyers are making all-cash offers
- buyers are using an appraisal gap addendum
- buyers are waiving financing contingencies
- sellers receive multiple competing offers
In these situations, sellers want stronger proof that the buyer can close.
What Happens If Evidence of Funds Is Not Provided
If Form 22EF is included in the contract, the buyer must provide the requested documentation within the deadline specified in the addendum.
If the buyer fails to provide proof of funds, the seller may have options under the contract to challenge the buyer’s ability to perform.
Because of this, buyers should ensure they can provide documentation before agreeing to this addendum.
Why Form 22EF Matters in Washington Transactions
Form 22EF helps create transparency around a buyer’s financial capability.
It protects sellers by confirming the buyer has the resources needed to complete the purchase and reduces the risk of the transaction failing later in escrow.
Understanding how this form works helps buyers prepare stronger offers and helps sellers evaluate which offers carry the least financial risk.
You can explore the full library of Washington real estate process explanations here.
Bottom Line
Form 22EF is the Evidence of Funds Addendum used in Washington real estate offers to verify that a buyer has sufficient funds available to complete the purchase.
FAQ
What is Form 22EF in Washington real estate?
Form 22EF is the Evidence of Funds Addendum used to verify that a buyer has sufficient funds available to complete the purchase of a property.
Why do sellers request evidence of funds?
Sellers request proof of funds to confirm the buyer has the financial ability to complete the transaction.
What documents can be used as evidence of funds?
Common documents include bank statements, investment account statements, or financial verification letters from financial institutions.
Is Form 22EF required in every transaction?
No. The Evidence of Funds Addendum is optional and is typically used when sellers want additional proof of a buyer’s financial ability.
Is evidence of funds required for cash offers?
Yes. Sellers almost always require proof of funds when a buyer submits an all-cash offer.