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This document serves as an addendum to an agreement of sale, outlining conditions under which the sale is contingent upon the property being appraised at a value acceptable to the buyer's underwriter

How to fill out appraisal contingency addendum to

How to fill out appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE

1. Begin by identifying the property address and the parties involved in the Agreement of Sale.
2. Clearly state the appraisal contingency terms, including the requirement for an appraisal to be completed.
3. Specify the deadline for the appraisal to be conducted and reported.
4. Indicate the acceptable value for the appraisal, typically aligning with the purchase price or a specified threshold.
5. Include clauses detailing what happens if the appraisal value is lower than expected, such as the right to renegotiate or withdraw from the agreement.
6. Ensure that both parties sign and date the addendum to acknowledge their acceptance of the terms.

Who needs appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

1. Buyers who want protection against overpaying for a property based on its appraised value.
2. Sellers who may want to clarify expectations regarding the appraisal process during a real estate transaction.

People Also Ask about

How do you write a contingency clause in a real estate contract?

A contingency clause should clearly outline the conditions, how the conditions are to be fulfilled, and which party is responsible for fulfilling them. The clause should also provide a timeframe for what happens if the condition is not met.

Is it normal to have an appraisal contingency?

An appraisal contingency isn't required for an offer letter. There are instances where it makes sense to include the appraisal contingency and others where it's strategic to waive the clause.

What is the appraisal contingency addendum?

An appraisal addendum protects the buyer from acquiring an undervalued home. If a property appraisal does not value the home at the minimum sale price, an appraisal addendum allows the buyer to withdraw from the sale. The buyer then has the right to terminate the contract and receive their earnest money back.

What is an example of a home appraisal contingency?

A contingency is a potentially negative future event or circumstance, such as a global pandemic, natural disaster, or terrorist attack. By designing plans that take contingencies into account, companies, governments, and individuals are able to limit the damage done by such events.

What is an example of an appraisal contingency?

Appraisal contingency example Let's say you make an offer of $250,000 on a home. You put down 10% – or $25,000 – and plan on your lender providing you a mortgage with a principal balance of $225,000. However, your lender will only loan you an amount at or below the fair market value.

What is an example of a contingency on a home inspection?

In California, real estate purchase agreements can include several different types of contingencies. The home appraisal contingency is one of the most commonly used, for reasons that will soon become clear.

For pdfFiller’s FAQs

What is appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

An appraisal contingency addendum to an agreement of sale is a clause that allows a buyer to ensure that the value of the property being purchased is confirmed by an independent appraisal. If the property appraises below a certain value, the buyer can negotiate a lower sale price or back out of the sale.

Who is required to file appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

Typically, it is the buyer who is required to file the appraisal contingency addendum as part of their offer to purchase a property. This addendum protects the buyer's interests in the event that the property does not appraise at the expected value.

How to fill out appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

To fill out an appraisal contingency addendum, the buyer should include information such as the agreed purchase price, the time frame allowed for the appraisal to occur, and any specific conditions that need to be met based on the appraisal results. This document should be completed in conjunction with the purchase agreement.

What is the purpose of appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

The purpose of the appraisal contingency addendum is to provide a safeguard for the buyer, ensuring that they do not overpay for a property and can renegotiate or withdraw from the sale if the property's appraisal value is lower than the purchase price.

What information must be reported on appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE?

The information that must be reported on the appraisal contingency addendum includes the purchase price, the date by which the appraisal must be completed, any conditions related to the appraisal findings, and the specific actions that will be taken if the property appraises lower than the purchase price.