APPRAISALS: The Purchase and Sale Agreement does not contain a pre- printed appraisal contingency. However, some lenders will only offer the buyer a loan if the property appraises for the contract price. The buyer and seller may choose to renegotiate to the lesser appraised value. When a buyer has added an appraisal contingency to the special stipulations, the disposition of the contract will follow the terms of contingency. CLOSING DATE AND POSSESSION: The Purchase and Sale Agreement provides that the closing shall be on a specific date, at a specific location and possession will follow either the closing or other time as mutually agreed. The parties further agree that the buyer will allow the seller to retain possession through closing, through a number of hours after closing, or within a number of days after closing. This section of the contract also states that both parties agree that should the loan be unable to be closed on the proposed date or that the seller fails to satisfy title, either party, upon written notice provided before the agreed upon closing date, can extend the contract closing date up to seven days. Once either party uses this option, the right terminates and can no longer be exercised. RIGHTS AND RESPONSIBILITIES: The Purchase and Sale Agreement not only outlines the details of the agreement between the parties, it also determines the disposition of earnest money, the resolution of disputes between the parties and limits the liability of certain parties to the transaction. The agency and brokerage section defines representation for both parties to the contract and defines the rules of engagement between brokers, agents, clients and customers. Sections of the Purchase and Sale Agreement also dictate how communications are exchanged between the parties and provides for specific contact methods.
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