Contracts
A Pennsylvania Agreement of Sale clause stating 'This agreement is contingent upon the property appraising at or above the purchase price' is a(n):
AFinancing contingency only
BAppraisal contingency protecting the buyer if the lender's appraisal is lower than the purchase price✓ Correct
CMarket value guarantee by the seller
DIllegal clause under RELRA
Explanation
An appraisal contingency protects the buyer when the lender's appraisal comes in below the purchase price. Without this contingency, if the appraisal is low, the buyer must make up the gap with additional down payment or negotiate a price reduction.
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