I am doing a lease/purchase and I am the buyer. What if we get down to closing time and the property does not appraise for the sales price?
13-Feb-2009
This depends on how the contract reads. If there is a contingency in the contract for the property to appraise at or above the sales price and the property does not appraise at that value, you could be released from the purchase contract based upon a contingency not being met. At that time, the seller could make the decision to lower the sales price or refund your Earnest Money.
However, this brings up another issue. What if the Lease document within the Lease/Purchase stated that the deposit was NON-REFUNDABLE IN ANY EVENT? Would my money be gone?
This depends on how the contract reads. If there is a contingency in the contract for the property to appraise at or above the sales price and the property does not appraise at that value, you could be released from the purchase contract based upon a contingency not being met. At that time, the seller could make the decision to lower the sales price or refund your Earnest Money.
However, this brings up another issue. What if the Lease document within the Lease/Purchase stated that the deposit was NON-REFUNDABLE IN ANY EVENT? Would my money be gone?
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