Contracts
In South Dakota, an 'appraisal contingency' in a purchase agreement protects the buyer by:
AGuaranteeing the property will appraise at the sale price
BAllowing the buyer to renegotiate or exit if the property appraises below the purchase price✓ Correct
CRequiring the seller to lower the price to appraised value automatically
DProviding an additional 30 days to close if the appraisal is late
Explanation
An appraisal contingency allows the buyer to renegotiate the price or exit the contract (and recover earnest money) if the property appraises for less than the agreed purchase price.
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