Contracts
In Montana, an 'appraisal contingency' in a purchase agreement protects the buyer if:
AThe seller disagrees with the appraised value
BThe property appraises for less than the purchase price, allowing the buyer to renegotiate or cancel✓ Correct
CThe appraiser makes a factual error in the report
DThe lender takes more than 30 days to order the appraisal
Explanation
An appraisal contingency allows the buyer to renegotiate the price or cancel the contract if the property appraises for less than the purchase price. Without this contingency, a low appraisal does not automatically give the buyer the right to cancel.
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