Legal Question in Real Estate Law in Virginia
closing and appraisal protocal
A buyer and seller have signed a purchase agreement for the sale price based on the current appraised value of a house, to be good for 30 days from date of appraisal. The contract states the seller is obligated to sell upon receipt of buyer's full downpayment, (~10%). These conditions have been met and the buyer is now ready to close.
If a mortgage company orders an appraisal, and the mortgage papers and purchase agreement are based on this appraisal, can the seller reject the appraisal and mortgage, order his own appraisal for the mortgage company to use as a basis for the sale price (not stated or claimed as the seller's right in the initial purchase agreement). Can the seller also refuse to attend closing with the motive of putting it off to get a significantly higher appraisal on the house, (e.g. when sudden recent sales hit the books), and go to closing six to eight weeks later? (Again not stated or claimed as the seller's right in the initial purchase agreement). With interest rates increasing also, waiting is not in the buyers best interest.
1 Answer from Attorneys
Re: closing and appraisal protocal
The answers to your questions might well be deduced from your repeated references to "not stated or claimed as the seller's right in the initial purchase agreement". Given these patent ambiguities, these answers, therefore, could be reasonably limited to: perhaps, or perhaps, not. And without reviewing the initial purchase agreement as well as the other relevant facts attendant on this transaction, it would be very difficult for me(or another evaluator,I would think)to say.
Another question might also be raised as to how the prospective buyer could be very certain as to what the motive was for the seller's nonappearance at the scheduled closing.
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