Appraisal Contingency

Appraisal Contingency Election (Paragraph 10B of Regional)
1. Appraisal Contingency must be elected in Regional Paragraph 10B
  1. MUST Use Paragraph 9 of Addendum of Clauses if selected!
2. No Appraisal Contingency in MAR (can use Addendum)
3. Separate and Distinct from Financing Contingency
Appraisal Contingency (Par. 9 of Addendum of Clauses)
1. Contract contingent on obtaining appraisal for value no less than Sales Price
  1. Contingency continues past deadline unless seller Delivers an Appraisal Expiration Notice (Form 1333, Par. 1) prior to receipt of buyers Appraisal Notice And/Or Addendum (Form 1333 Par. 3), in which case contingency expires on 9:00 PM of 3rd day following delivery of expiration notice
    1. If Buyer does not respond to Appraisal Expiration Notice, Appraisal Contingency EXPIRES (contract in full force and effect
  2. If Appraisal comes in at or above the Sales Price, Buyer may remove the Appraisal Contingency by providing Removal of Appraisal Contingency Notice (Form 1333, Par. 2)
2. If Appraisal below the Sales Price, Buyer must deliver:
  1. Copy of Appraisal; and
  2. Appraisal Notice And/Or Addendum (Form 1333 Par. 3) requesting reduced price (not less than appraised value) within time period (original or “3 day cure”)
3. Seller has three (3) days to accept reduced price or make another offer
  “Tennis Match” - within 3 days of notice delivery, other party may
  1. Accept terms;
  2. Continue negotiations; or
  3. Declare contract void subject to 3 day requirement.
4. Failure to Respond to Appraisal Notice And/Or Addendum or a “Tennis Match” notice within 3 days renders Contract null and void
Impact of new Jurisdictional Addenda
1. MC Jurisdictional Paragraph 11D(i)(D)
2. DC Jurisdictional Addendum Paragraph 8
3. Rejection for Financing due to appraisal is not a valid grounds to void contract under Financing Contingency (clarifies Default Paragraph 26D of Regional)