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Appraisal CONTiNGENCY aDDENDUM TO aGrEEMENT OF salE aCa This form recommended and approved for, but not restricted to use by, the members of the Pennsylvania Association of REALTORS (PAR). 1 2 3 4.

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“This clause asserts that your offer is dependent on being able to secure financing. If you remove it, you may not get your deposit back if you cannot obtain a loan,” says Herman. So, if you're like most buyers and plan on financing your home purchase with a mortgage, you should never remove the financing contingency.

What Does Loan Contingency Mean? Loan contingencies (also known as mortgage contingencies or financing contingencies) are clauses included in home sale agreements that protect the buyer from losing their earnest money if their home loan is not approved in time.

An appraisal contingency gives the buyer the right to back out if a professional property appraisal comes in lower than a specified minimum. A financing contingency (or “mortgage contingency”) gives the buyer time to obtain a mortgage and the right to cancel if financing is denied.

The Appraisal Contingency in Florida Real Estate Sales The parties must agree on a sale price that at least in theory, represents the value of the property. The sale price that the buyer and seller agree on may or may not be the actual value of the property. But the parties can make the sale contingent on an appraisal.

Removing the loan contingency means you agree to pay the purchase price for the property even if you don't have a home purchase loan. You should only remove the loan contingency in a purchase agreement if you're a cash buyer or are absolutely certain you will obtain financing.

A mortgage contingency – also known as a financing contingency or a loan contingency – is a clause that allows buyers to cancel the contract of the home purchase without penalty and receive a refund of their earnest money deposit if they're unable to secure a mortgage.

As an appraisal contingency example, if you agree to buy a home for $200,000, but the appraised value comes in at only $190,000, the lender will not give you a loan for the property unless you cover the difference.

What is an appraisal contingency addendum? An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain agreed-upon conditions.

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  • REALTORS
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  • specified
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  • mutually
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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232