Contracts
Which clause in a Minnesota purchase agreement allows the purchase price to be adjusted after an appraisal comes in lower than the agreed price?
AFinancing contingency
BAppraisal contingency✓ Correct
CInspection contingency
DTitle contingency
Explanation
An appraisal contingency protects the buyer if the property appraises below the agreed purchase price. It typically allows the buyer to renegotiate the price, pay the difference in cash, or cancel the contract and recover their earnest money. Without an appraisal contingency, lenders may not fund the full loan amount if the appraisal is low.
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