Contracts
Which clause in a purchase agreement protects the buyer if the property does not appraise at the purchase price?
AInspection contingency
BFinancing contingency / appraisal contingency✓ Correct
CEscalation clause
DRight of first refusal
Explanation
A financing or appraisal contingency allows the buyer to renegotiate or exit the contract if the property appraises below the purchase price, protecting the buyer from being obligated to pay more than the lender will finance.
Related Nebraska Contracts Questions
- A contract for deed (land contract) in Nebraska that provides for less than 5 years of payments may have different forfeiture rights than longer contracts because:
- A Nebraska purchase agreement with a financing contingency that specifies 'buyer to obtain a 30-year conventional mortgage at no more than 7% interest' would allow the buyer to cancel if:
- A Nebraska seller who accepts a backup offer while the primary offer is still in force must:
- An 'implied warranty of habitability' for newly constructed homes in Nebraska means:
- In Nebraska, a lease agreement for more than one year must be:
- Under Nebraska law, a listing agent who represents a corporation selling real property must ensure the contract is signed by:
- Nebraska's real estate purchase agreements typically include a provision that 'this agreement supersedes all prior discussions and representations,' which is known as the:
- In Nebraska, 'time is of the essence' is most commonly stated in a purchase agreement to ensure that:
Practice More Nebraska Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nebraska Quiz →