Contracts
An Alaska buyer's contingency clause states the offer is contingent upon the property appraising at or above the purchase price. If the appraisal comes in below the purchase price, the buyer may:
ADemand the seller reduce the price to the appraised value
BCancel the contract and receive their earnest money back, or negotiate a price reduction✓ Correct
CProceed only if the lender approves an exception
DLose their earnest money if they cancel
Explanation
An appraisal contingency gives the buyer the right to cancel and receive a refund of their earnest money if the property appraises below the purchase price. Alternatively, the buyer and seller may renegotiate the price to the appraised value.
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