Contracts
In Missouri, a purchase contract's appraisal contingency protects the buyer by:
AGuaranteeing the appraisal will equal the purchase price
BAllowing the buyer to cancel or renegotiate if the property appraises below the purchase price✓ Correct
CRequiring the seller to lower the price to appraised value
DWaiving the appraisal requirement
Explanation
An appraisal contingency allows the buyer to cancel or renegotiate if the appraised value is below the contracted price. Lenders will not fund more than the appraised value, so buyers need protection.
Related Missouri Contracts Questions
- In Missouri, a seller who accepts an offer but later receives a higher offer faces which legal issue if they try to accept the higher offer?
- In Missouri, 'novation' in a real estate contract context means:
- A Missouri listing agreement is typically terminated by all of the following EXCEPT:
- Under the Missouri parol evidence rule, oral agreements made before a written contract:
- Under Missouri's Uniform Electronic Transactions Act (UETA), an electronic signature:
- A Missouri contingency for sale of buyer's existing home protects the buyer by:
- In Missouri, an offer to purchase a property for $250,000 is valid only if it contains all of the following EXCEPT:
- In Missouri, a rider (addendum) to a purchase contract must be:
Practice More Missouri Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Missouri Quiz →