Contracts
A North Dakota purchase agreement contingency that allows the buyer to back out if the seller's property doesn't appraise at the purchase price is called a(n):
AInspection contingency
BAppraisal contingency✓ Correct
CFinancing contingency
DTitle contingency
Explanation
An appraisal contingency allows the buyer to terminate the contract (and typically recover earnest money) if the property appraises below the agreed purchase price. Without this protection, buyers might be obligated to pay more than the property's appraised value.
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