Contracts
A Kentucky buyer submits an offer on a Lexington horse property with an appraisal contingency. If the property appraises below the offer price, the buyer may:
ABe forced to purchase at the appraised value
BRenegotiate the price, accept the lower appraisal value, or cancel the contract✓ Correct
CRequire the seller to reduce the price to the appraised value automatically
DSue the appraiser for the difference
Explanation
An appraisal contingency gives the buyer the right to renegotiate, accept the lower appraised value and make up the difference in cash, or cancel the contract if the appraisal comes in below the purchase price.
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