Contracts

A NJ real estate contract provision stating that the buyer agrees to purchase the property 'subject to satisfactory appraisal at or above the purchase price' is a(n):

AInspection contingency
BAppraisal contingency✓ Correct
CFinancing contingency
DHome sale contingency

Explanation

An appraisal contingency makes the buyer's obligation to close contingent on the property appraising at or above the purchase price. It protects the buyer from being forced to proceed if the lender's appraisal comes in below the agreed price.

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