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Is it a legal requirement to have appraisal contingency?

Posted on: 26th Nov, 2007 03:34 am
I'm happy to have stumbled into this forums. There's lot of info in diffrent sections, what i'm bothered about is, i'm moving on to buy a property of my own, that would be our first ever home, we were renting since the past 2 years of marriuage. Now the question is, do i need to have an appraisal contingency? is it legally necessary?
A contingency is required to be done but i am not sure of the legal aspects.
Posted on: 26th Nov, 2007 03:39 am
Hi Baker,

Welcome to the forums.

Most home purchase contracts include a contingency for buyers to get a mortgage to finance their homes. Now, it depends on the contract as to how the contingency would be framed in words. It may or may not have any reference to appraisal of the property.

However, when the buyer can qualify for a large amount of loan with respect to the property value, appraisal contingencies aren't necessary. But I persoanlly feel, every home purchase contract should have the contingency because if you are going for a mortgage to buy a home, it's hard to overlook the appraisal issues.

Take Care
Posted on: 26th Nov, 2007 03:52 am
It is not required but highly recommended.

The only thing a contract needs to be legal is a clear agreement between parties and money needs to change hands. That is it.

This is an example of the most basic of purchase contracts...

I "insert name/s here" will purchase property at "insert address" for "insert dollar amount" by "insert date here" from "insert seller name here".

Sign here

Sign here


That is all that is legally required for a contract. Everything else is NEGOTIABLE.
Posted on: 26th Nov, 2007 10:07 am
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