The "Appraisal Contingency Waiver Addendum" allows buyers to waive or modify the appraisal contingency in a real estate transaction, meaning they agree to proceed with the purchase even if the property appraises for less than the agreed price. Buyers can choose to fully waive the contingency or partially waive it by agreeing to cover a specific amount over the appraisal, up to a limit. This addendum may be used in competitive markets and may require buyers to bring additional cash to closing if the appraisal (and approved loan amount) is lower than the purchase price.

If your home purchase involves an earnest money deposit, the Earnest Money - Consent to Distribution form is essential, especially in case the transaction is terminated. This form outlines how the earnest money—funds showing the buyer’s commitment—will be distributed if the sale doesn’t proceed. If there’s any disagreement between buyer and seller on how to distribute these funds, the holder of the earnest money may file an "Interpleader" action. This legal proceeding allows the court to determine the final distribution, and any associated legal fees could be charged to the non-prevailing party.

To protect your interests, carefully review this form with your agent and consider consulting an attorney to understand your rights fully.