Contracts
In South Dakota, a real estate contract that contains an 'appraisal contingency' allows the buyer to:
ADemand the seller reduce the price if the property appraises high
BTerminate the contract and recover their earnest money if the property appraises below the purchase price✓ Correct
CHave the property appraised by any appraiser of their choice with no time limit
DNegotiate the commission rate based on the appraised value
Explanation
An appraisal contingency protects the buyer by allowing them to terminate the contract (and recover their earnest money) if the property appraises below the purchase price, protecting against overpaying for a property that won't support the purchase price in the lender's collateral assessment.
Related South Dakota Contracts Questions
- Which of the following is an example of a contingency that would protect the SELLER in a South Dakota purchase agreement?
- In South Dakota, a seller who lists a property 'as-is' cannot escape liability for:
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- A counteroffer in South Dakota real estate has which legal effect?
- In South Dakota, parol evidence rule means:
- South Dakota's Uniform Electronic Transactions Act (UETA) provides that electronic signatures in real estate contracts:
- A South Dakota purchase agreement requires the seller to provide clean title at closing. If the title search reveals an unresolved mechanic's lien, the seller must:
- In South Dakota, when a seller's agent uses a standard real estate purchase agreement form, they are:
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