Contracts
In Vermont, which clause in a purchase and sale agreement typically protects the buyer if the property does not appraise at the agreed purchase price?
AThe mortgage contingency clause
BThe appraisal contingency (or appraisal gap) clause✓ Correct
CThe title contingency clause
DThe inspection contingency clause
Explanation
An appraisal contingency allows the buyer to terminate the contract or renegotiate the purchase price if the property appraises below the agreed price. Without this protection, the buyer may be required to pay the difference between the appraisal and the purchase price out of pocket.
Related Vermont Contracts Questions
- A Vermont buyer's offer is accepted by the seller. The buyer then discovers the seller cannot deliver clear title by closing. The buyer's remedy is typically:
- In Vermont, a buyer's 'right of first refusal' in a lease option agreement gives the buyer the right to:
- A Vermont real estate purchase contract requires the buyer to obtain written financing approval by a specific date. If the buyer fails to secure financing by that date and the contract has a financing contingency, the MOST LIKELY outcome is:
- If a buyer makes an offer and the seller changes the price and accepts, the buyer's original offer has been:
- A Vermont seller signs a listing agreement with Broker A. Before any offer is received, the seller signs a second listing agreement with Broker B for the same property. Regarding the first agreement:
- A Vermont seller who dies between the signing of the purchase contract and closing — but before the deed is transferred — creates what situation?
- A Vermont purchase contract becomes binding when:
- An option contract in Vermont real estate gives the buyer:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →