What's New on Page 4

10 B. Appraisal Contingency (this is all new):

Option 1: Contract IS CONTINGENT on Purchaser obtaining an Appraisal certifying the value of the Property to be no less than the Sales Price. What happens next is specified in various addenda. In Virginia the Appraisal contingency language is made a part of the jurisdictional addendum.

Option 2: Contract is not contingent on appraisal. Purchaser acknowledges risks inherent in proceeding without a contingency and agrees to provide any additional cash necessary to close in the event of a low appraisal.

More Details are available in this earlier Blog Post

10 C. Financing Contingency (all new as well):

Option 1: This Contract IS CONTINGENT on Purchaser obtaining approval for loan(s) to purchase the Property. Contingency may be removed by delivery of new Regional Form 100 – which may or may not have to have a lender’s letter attached. If Form 100 is not delivered by the deadline the contingency continues until the Seller delivers a notice that the contract will become void in 3 days unless it satisfied.

If you check the box requiring a lender’s letter to remove the Financing Contingency, the letter must contain the following six statements:
1. The Purchaser is approved for the Specified Financing;
2. A ratified Contract has been received;
3. A written application for the financing has been made;
4. Income, asset, and liability documentation on the Purchaser have been received;
5. The Purchaser’s credit has been reviewed; and
6. The application has been reviewed and meets underwriter and investor guidelines

The Purchaser may also satisfy the contingency by providing Regional Form 100 along with evidence that they have sufficient funds to close without financing.

OPTION 2: This Contract IS NOT CONTINGENT. Purchaser acknowledges risks inherent in proceeding without a contingency

Again, more details can be found in an earlier post

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