Contracts
An appraisal contingency in a NJ purchase contract protects the buyer when:
AThe home inspector finds defects
BThe property appraises below the purchase price and the buyer cannot or does not want to pay the difference✓ Correct
CThe seller fails to vacate
DThe title has a cloud
Explanation
An appraisal contingency allows the buyer to renegotiate or terminate the contract if the property appraises below the purchase price, protecting them from overpaying or being forced to cover a gap between appraised value and contract price.
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