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The Appraisal Contingency Addendum is a vital document in Australian real estate transactions, designed to protect both buyers and sellers by making the purchase contingent upon a satisfactory professional property appraisal. This document is particularly crucial in transactions where mortgage financing is involved, as lenders typically require the property's appraised value to meet or exceed the purchase price. The addendum outlines specific conditions, timeframes, and procedures for obtaining and reviewing the appraisal, along with clear provisions for what happens if the property doesn't appraise at the expected value. It must comply with Australian property law, consumer protection legislation, and state-specific requirements for property transactions. The document is commonly used in both residential and commercial property transactions where parties wish to ensure the purchase price aligns with the property's market value.
