All the best,
This sounds like a similar situation to a FSBO selling to a private party. They probably do not need a Realtor and they certainly should not, therefore, use a CAR Contract. I would suggest that they talk to an attorney or perhaps to a Title Company first. Title Comoanies are familiar with FSBO contracts.
At the very least, they should get hold of one of the publications that explains how to sell your home without a Realtor. This is one of the few situations where it may actually make sense to do so.
Bernard Gibbons, J. Rockcliff Realtors
DRE License # 01331583
Phone (925) 997-1585 - firstname.lastname@example.org
They don't want any contract, all they want is a loan from me. But I cannot proceed with a loan without some sort of written agreement. Lender does not require a specific contract.....
PS I also suggested they hire a Realtor.