A buyer enters into an agreement with multiple conditions, including one for a satisfactory property appraisal by a specific financial institution. If the chosen institution provides an appraisal below the agreed-upon purchase price, and the buyer cannot secure sufficient funding, what is the buyer's best course of action?

Question: A buyer enters into an agreement with multiple conditions, including one for a satisfactory property appraisal by a specific financial institution. If the chosen institution provides an appraisal below the agreed-upon purchase price, and the buyer cannot secure sufficient funding, what is the buyer's best course of action?

Answer options: ✅ Notify the seller in writing that the condition for satisfactory appraisal has not been met and the agreement is terminated.

• Seek an immediate re-appraisal from a different financial institution.
• Fund the difference between the appraisal and purchase price from personal savings.
• Demand the seller reduce the purchase price to match the appraisal.

Correct answer: Notify the seller in writing that the condition for satisfactory appraisal has not been met and the agreement is terminated.

Explanation: If a condition like a satisfactory appraisal is not met, the buyer has the right to terminate the agreement by providing timely written notice to the seller. This protects the buyer by allowing them to exit the contract without penalty if a key prerequisite for their purchase is not satisfied.