Contracts
A North Dakota home sale falls through because the appraisal comes in $15,000 below the purchase price. Under a standard appraisal contingency, the buyer may:
ANever cancel the contract; they must make up the difference
BCancel the contract and receive a refund of earnest money, or negotiate with the seller for a price reduction✓ Correct
CReceive the appraisal shortfall paid by the lender
DRequire the seller to increase the selling price to match the appraisal
Explanation
An appraisal contingency protects the buyer when a property appraises below the purchase price. The buyer may cancel the contract and recover earnest money, or negotiate with the seller to reduce the price to the appraised value.
Related North Dakota Contracts Questions
- In North Dakota, when a seller provides a property disclosure to the buyer who subsequently 'accepts' it with no objections, this typically:
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- Under a North Dakota open listing, how many brokers may the seller authorize simultaneously?
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