Is seller entitled to cancel or terminate sales contract if contract states:"home must appraise at or above purchase price "?
buyer refuses to provide appraised market data. I would like to terminate the purchase contract if the appraisal is less than the purchase price. The buyer normally does not have to provide seller appraisal data BUT since the above referenced clause is in the contract seller is now entitled to the appraisal data.
The answer to your question depends on the wording of the contract. If you are a buyer trying to terminate the contract based on an inadequate appraisal, you will probably have to give the seller access to the appraisal data. If you are unsure of your rights and responsibilities under the contract, you should consult an experienced real estate lawyer in your area.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does... more
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. Actual legal advice can only be provided after completing a comprehensive consultation in which all of the relevant facts are discussed and reviewed.
Typically, that is a clause that is used by the Buyer to avoid a contract for more than the home is worth (as evidenced by the appraisal). If the Buyer is attempting to back out of the contract, they MUST provide the appraisal as proof of their contention. As Seller (I assume you are the Seller?) unless you agreed, in the contract, that you would adjust the purchase price to meet the value established by an appraisal, you do not have to lower your purchase price, regardless of what the appraisal says. The Buyer can choose to leave the contract or not. Again, depending upon the language of your contract, Seller cannot arbitrarily cancel the contract because they don't like the appraisal amount, particularly if the Buyer is still willing to move forward to closing on the original purchase price. Note that if the Buyer is getting a mortgage, generally the lender will not allow for the purchase of a home at a price that exceeds their appraisal. Your realtor should know this stuff. If not, clear it with their broker. If you need clarification of any of the contract items, please seek review of the contract by a local real estate attorney (shouldn't cost much at all) so that you know what your options and responsibilities are.
Carol Johnson Law Firm, P.A. : (727) 647-6645 : firstname.lastname@example.org : Wills, Trusts, Real Property, Probate,... more
Carol Johnson Law Firm, P.A. : (727) 647-6645 : email@example.com : Wills, Trusts, Real Property, Probate, Special Needs: Information provided here is anecdotal and should not be relied upon or considered legal advice. Every matter is different and answers given here are general in nature and may not reflect current Florida law at the time you are reading this posting. Please contact me if you feel you need additional assistance with your matter.