Appraisal Contingency Addendum Template for Pakistan

The Appraisal Contingency Addendum is a critical document in Pakistani real estate transactions that protects both buyers and sellers by establishing clear terms regarding property valuation. This document is typically used when a property purchase is contingent on the property appraising at or above the agreed purchase price, which is particularly important in transactions involving mortgage financing. The addendum must comply with Pakistani contract law, property regulations, and banking requirements, including Islamic banking principles where relevant. It includes specific provisions for appraisal procedures, timelines, rights and obligations of parties, and resolution processes for various appraisal outcomes. The document is essential for transactions where property valuation may impact the final sale, particularly in cases involving bank financing or when parties seek additional assurance about the property's market value.

1. Parties: Identification of all parties to the addendum, including buyer, seller, and reference to any agents involved

2. Background: Reference to the main purchase agreement this addendum modifies, including date and property details

3. Definitions: Key terms used in the addendum including 'Appraisal', 'Appraised Value', 'Purchase Price', and 'Contingency Period'

4. Appraisal Requirement: Details of the required appraisal, including who will conduct it and timeframe for completion

5. Contingency Terms: Specific conditions under which the contingency can be invoked, including minimum acceptable appraised value

6. Rights and Obligations: Responsibilities of each party regarding the appraisal process, including cost allocation and cooperation requirements

7. Resolution Process: Steps to be taken if the appraisal comes in below the specified value, including negotiation periods and price adjustment protocols

8. Termination Rights: Conditions under which either party may terminate the purchase agreement based on appraisal results

9. Notice Requirements: Procedures for communicating appraisal results and decisions between parties

10. Integration Clause: Statement confirming this addendum's relationship to the main purchase agreement