Contracts
An Indiana purchase agreement containing an appraisal contingency allows the buyer to:
AWithdraw if the seller's disclosure is incomplete
BWithdraw or renegotiate if the property does not appraise at the purchase price✓ Correct
CExtend the closing date indefinitely
DOverride the lender's appraisal with their own
Explanation
An appraisal contingency allows the buyer to renegotiate or withdraw without penalty if the property appraises for less than the purchase price, protecting the buyer from overpaying.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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