ContractsContingenciesEASY
A buyer's contract includes an appraisal contingency. The property appraises at $280,000 but the contract price is $300,000. What does the appraisal contingency typically allow?
Correct Answer
B) The buyer may cancel or renegotiate the price
An appraisal contingency allows the buyer to cancel or renegotiate if the property fails to appraise at or above the contract price.
Answer Options
A
The lender must approve the loan regardlessB
The buyer may cancel or renegotiate the priceC
The seller must lower the price to $280,000D
The appraiser must redo the appraisalWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Contracts Question
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Background Knowledge for Contracts
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Real World Application in Contracts
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Related Topics & Key Terms
Key Terms:
contingenciescontractsappraisalrenegotiation
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