Contracts
In Rhode Island, an 'appraisal contingency' in a purchase agreement allows the buyer to:
AHave the seller pay for the appraisal
BTerminate the contract or renegotiate if the property appraises below the purchase price✓ Correct
CRequire the appraiser to raise the value
DDelay the closing indefinitely pending appraisal
Explanation
An appraisal contingency protects the buyer if the property appraises below the contract price. The buyer may renegotiate the price, make up the difference in cash, or terminate the contract and recover their earnest money.
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