Impossible Disclosure to sign from REO agent

I received a disclosure from an REO agent. requesting my buyers and their lenders to sign. But there's a sentence in the disclosure that I don't feel comfortable w/ this sentence states "1. Executed Contracts- it can take from 1-30 days for seller to execute the contract. Proceed with loan approval process even without signed contract"... Can any lender proceed without an excecuted contract? All in industry say NO but why are REO agents asking for the impossible?