Contracts
Iowa's appraisal contingency in a purchase agreement protects the buyer by:
AEnsuring the home appraises above the purchase price
BAllowing the buyer to renegotiate or cancel the contract if the property appraises below the agreed purchase price✓ Correct
CRequiring the seller to pay for the appraisal
DGuaranteeing the lender will fund the loan
Explanation
An appraisal contingency allows the buyer to renegotiate the purchase price, require the seller to reduce the price, or cancel the contract and recover their earnest money if the property appraises at less than the agreed purchase price, protecting the buyer from overpaying.
Related Iowa Contracts Questions
- If a seller fails to disclose a known material defect in Iowa, the buyer's potential remedies include:
- For an Iowa real estate purchase agreement to be legally enforceable, which element is NOT required?
- In Iowa, an earnest money check returned for insufficient funds from the buyer:
- An Iowa as-is clause in a purchase agreement means:
- An Iowa listing agreement includes a safety clause (protection period clause). This clause protects the broker's commission if:
- In Iowa, a contract for the purchase of a property worth more than $500 must generally be in writing under:
- An Iowa seller counters a buyer's offer and gives the buyer 48 hours to respond. Before the 48 hours are up, the seller revokes the counter. Is the revocation valid?
- An Iowa real estate contract contingency that allows the buyer to cancel if they cannot obtain financing is called a:
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →