Finance
What is an 'appraisal contingency' in a Kansas purchase contract?
AA requirement that the appraiser be licensed in Kansas
BA provision allowing the buyer to terminate the contract or renegotiate if the property appraises below the purchase price✓ Correct
CA lender's requirement to use a specific appraiser
DA contingency allowing the seller to order their own appraisal
Explanation
An appraisal contingency protects the buyer if the property appraises below the contract price. The buyer may renegotiate the price, make up the difference in cash, or terminate the contract and recover their earnest money.
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Key Terms to Know
Earnest Money
A deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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