PAR Form ACA, the Appraisal Contingency Addendum to the Pennsylvania Association of Realtors Standard Agreement for the Sale of Real Estate, lets a Pennsylvania buyer make the purchase contingent on the home appraising at or above a value chosen up front. Filling it out means picking that minimum value, agreeing on how long the contingency lasts, and understanding exactly what you can do if the appraisal falls short. Your licensed agent prepares the form and attaches it to the Agreement of Sale.
Getting the Form
Form ACA is not a public download. PAR members access fillable electronic versions through Lone Wolf Transactions (zipForm edition), which is included as a member benefit.1Pennsylvania Association of Realtors®. Standard Forms If you’re buying with a licensed Realtor, your agent prepares the addendum. Buyers working without an agent or through an attorney should contact PAR directly about non-member access.
Paragraph 1: Pick the Minimum Appraised Value
The whole addendum turns on one number. Paragraph 1 gives you three ways to define it, and you have to pick one or the form does nothing.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes
Option A ties the minimum to the purchase price. The property must appraise at or above whatever price you negotiated, including any price set through a Price Escalation Addendum (Form PEA). If the appraisal comes back a single dollar low, the contingency kicks in. This is the most protective choice and the simplest to work with.
Option B sets the minimum at a defined amount below the purchase price. You fill in a dollar figure representing the gap you’re willing to cover out of pocket. A buyer who can bring an extra $20,000 to closing writes “$20,000” here, and the appraisal only needs to reach the purchase price minus $20,000 for the contingency to be satisfied.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes In a competitive market this signals to the seller that a small shortfall won’t blow up the deal.
Option C sets a specific dollar amount regardless of the purchase price. Cash buyers use it when they want assurance the property is worth a particular number for their own purposes. Financed buyers occasionally use it when planning to borrow a specific loan amount and cover the rest themselves.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes
Which option fits depends on how much cash you have beyond your down payment. Option A gives the most protection. Option B is a negotiating tool. Option C is narrow, mostly for cash deals or specific financing setups.
Paragraph 2: Contingency Period and Who Picks the Appraiser
Paragraph 2 sets how long the contingency lasts and who selects the appraiser. The contingency period starts the day after the Agreement of Sale is executed and runs for a number of calendar days you negotiate. The default is 30 days, but the parties can agree to any timeframe.3Pennsylvania Association of Realtors®. Appraisal Contingency Addendum to Agreement of Sale The appraisal must be completed inside that window.
Selection depends on your financing. If you’re getting a mortgage, your lender picks the appraiser and you have no say. If you’re paying cash with no financing, you choose the appraiser yourself.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes The form also requires the seller to allow the appraiser access to the property regardless of what financing contingency the main agreement contains.
Paragraph 3: When the Appraisal Clears
If the appraisal meets or exceeds the minimum value you set in Paragraph 1, the contingency is satisfied and you proceed to closing at the agreed price. The same result follows if the appraisal is not completed within the contingency period: you’re treated as having waived the contingency and you must buy at the negotiated price.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes
Here’s the part that surprises people. If the appraisal clears your minimum but the appraised value causes your lender to change your loan terms, Paragraph 3 overrides the mortgage contingency in the main agreement. You’re responsible for adjusting your loan, bringing additional cash to settlement, or covering any extra fees those changes create.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes Once the number clears your minimum, the financing logistics become your problem.
Paragraph 4: When the Appraisal Falls Short
If the appraisal comes in below your minimum, you have two choices and both must happen inside the contingency period.2Pennsylvania Association of Realtors. Appraisal Contingency Addendum Changes
You can terminate the agreement. Deliver written notice to the seller along with a copy of the appraisal report, and your deposit comes back under the terms of the Agreement of Sale.
Or you can try to renegotiate. Reach a written agreement with the seller, typically a price reduction but possibly any change both sides accept. The seller is not required to agree to anything. The option simply gives you a chance to try.
Do neither before the contingency period expires at 11:59 PM on the final day, and you waive the contingency entirely and must proceed at the original purchase price.3Pennsylvania Association of Realtors®. Appraisal Contingency Addendum to Agreement of Sale Deadlines run in calendar days, not business days, starting the day after the agreement is executed. Mark the expiration date on your calendar the moment you sign.
Delivering the Appraisal Notice
When you decide to act on the contingency, you deliver notice using PAR’s Appraisal Notice form. The notice goes to the seller or the seller’s agent through one of the delivery methods allowed by the Standard Agreement, which typically includes email or personal delivery.3Pennsylvania Association of Realtors®. Appraisal Contingency Addendum to Agreement of Sale
Whether you’re terminating or trying to renegotiate, include a full copy of the written appraisal report with your notice. If you choose to negotiate, the seller has a limited window to respond and work toward a written amendment. If you choose to terminate, the process wraps up when both sides sign the release forms that return your deposit. Keep copies of every notice, delivery confirmation, and signed document as proof you acted within the contingency period.
Before You Terminate, Consider a Reconsideration of Value
Appraisals are professional opinions, and they sometimes rely on outdated comparables, miss recent renovations, or draw from the wrong neighborhood. You have the right to push back through a Reconsideration of Value.
Under Fannie Mae guidelines effective since August 2024, your lender must accept a formal ROV request from you. The request needs your name, the property address, the appraisal’s effective date, the appraiser’s name, and a clear explanation of what you believe is inaccurate. You can submit up to five comparable sales you think the appraiser should have used, along with MLS listing numbers or other supporting data.4Fannie Mae. Reconsideration of Value (ROV) You get one ROV per appraisal report.
Your agent is often the best resource for building the package. The lender forwards your request to the appraiser, who decides whether to adjust the value. Nothing is guaranteed. Watch your contingency deadline carefully, because an ROV takes time and a revised report that arrives after your period expires does not restore the protection you’ve already lost.
FHA and VA Buyers: Federal Clauses Sit Alongside the Form
If you’re using an FHA or VA loan, federal rules add protection that Form ACA alone doesn’t provide, and in some ways those federal protections are stronger.
FHA loans require an Amendatory Clause on every purchase contract. The FHA will not insure the mortgage without it. The clause gives you the right to cancel without losing earnest money if the property appraises below the purchase price. Unlike Form ACA, this protection cannot be waived.
VA loans use a stricter version called the VA Escape Clause. Federal regulation requires every VA purchase contract to include language stating the buyer is “not obligated to complete the purchase” or “forfeit earnest money” if the appraised value falls below the contract price.5VA Home Loans. VA Escape Clause You can still choose to proceed, but the protection itself cannot be waived by you, the seller, or the lender.
Form ACA and the federal clauses work in parallel. The federal clause sets the floor, guaranteeing your deposit back on a low appraisal. Form ACA adds structure the federal clause doesn’t cover, like the negotiation window. If you’re using FHA or VA financing, make sure your agent includes the required federal clause along with the PAR addendum.
How It Fits With the Mortgage Contingency
Form ACA does not replace the mortgage contingency in the Agreement of Sale. The two run alongside each other. A deal that depends on lender financing may not reach closing if the lender is unhappy with the appraised value, even when the buyer is willing to proceed.3Pennsylvania Association of Realtors®. Appraisal Contingency Addendum to Agreement of Sale The appraisal contingency protects your right to exit based on value. The mortgage contingency protects your right to exit if financing falls through for any reason.
Once the appraisal meets your minimum and the appraisal contingency is satisfied, you can no longer use it as an exit route. If the lender later denies the loan for a reason tied to the appraisal, such as a loan-to-value ratio that’s too high, the mortgage contingency may still protect you. Understand which contingency covers which scenario before you sign. Losing one does not automatically mean the other has you covered.