Appraisal Contingency - clarified by AAR (Arizona Association of Realtors)

 

A quick post for my fellow real estate professionals in Arizona;  

as well as home buyers and home sellers who may be in escrow and should be aware of the AAR (AZ Association of Realtors) legal opinion on...

‘Appraisal Contingency' and how it buyer & seller rights, time frames and earnest monies.

Please note, this opinion pertains only to the AAR Purchase Contract  used in Arizona.

Neither the AAR or myslef is offering any opinion in other states.

However, I encourage all Real Estate Agents and Brokers to examine rules in their respective states.

In the past there has been some confusion on whether or not,

according to AAR Purchase Contract .....  as it pertains to cash buyers,

Can Cash Buyers ** cancel a contract if the home fails to appraise for the purchase price anytime during the escrow period??

In essence,

does the appraisal for sales price contingency runs the life of the contract??

According to the newsletter this month from AAR,  This is NOT TRUE!

"Cash buyers can only cancel a contract within the inspection period, if a home fails to appraise.

Lines 59-61 (of the AAR Purchase Contract) only apply if financing is involved.

I hope this helps! and Good luck to all of you!

 

~ james wexler

Associate Broker

Coldwell Banker