Contracts
A Texas buyer who cannot close due to a lender-required appraisal coming in below contract price uses the 'Addendum Concerning Right to Terminate Due to Lender's Appraisal.' If they elect to terminate, they receive:
AOnly the option fee back
BThe earnest money back✓ Correct
CBoth the earnest money and the option fee
DThe earnest money less the appraisal fee
Explanation
If a buyer properly terminates under the appraisal addendum because the lender's appraisal comes in below the contract price, the earnest money is returned to the buyer. The option fee (if there was one) stays with the seller.
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