Is it legal to add a non-contingent appraisal clause into a purchase and sale contract?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal to add a non-contingent appraisal clause into a purchase and sale contract?
With today’s market, we are being offering our asking price and even higher but the home won’t appraise for that much. Can we add a clause that says to the buyer that they are of course welcome to do an appraisal, but the final sale price won’t be contingent on it?
Asked on July 2, 2015 under Real Estate Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
It is legal, but IF the purchase is contingent on getting a mortgage, then you won't be able to sell the home--the buyer can't get a mortgage if the home won't appraise (and the lender cannot be made to lend if the home doesn't appraise; the lender is not a party to the contract and is not bound by it). If there is also a finance contingency in the contract, then the buyers would be released from their obligation(s) without penalty if they can't get financing. Of course, for a cash sale, the appraisal is irrelevant if the buyer agrees to not have it affect the price.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.