For some reason, my partner wrote "Buyer agrees to pay list price regardless of appraisal" on our offer/contract. We NEVER do that!
The appraisal has now come in $12,000 less than the contract price.
BUT, they are VA buyers, and the contract states:

'It is expressley agreed that, not withdstanding any of the provisions of this agreement, buyer shall not incur any penalty by forfiture of earnest money or otherwise be obligategd to complete the purchase of the property described by the agreement if the agreeed purchase price or cost exceeds the reasonable value of the property established by the vetrans administration. Buyer shall, however, have the priveladge and option of proceeeding with the consumation of this agreement without regard to the amount of the reasonable value established by the department of veterans affairs. The Veteran/Buyer certifies that buyer is going to occupy residence as primary residence."

Is that an out for us? Thanks!

"notwithstanding" means despite, or no matter what something else says.

So the way I read that and the way I understand VA loans that would be an out UNLESS your buyer wanted to pay the difference between appraised price and list price in cash (and of course, if he had the 12K in cash to pay)

Thanks!!!

My favorite mortgage banker just confirmed it; "must appraise for sale price" notwithstanding (no matter what anything else says) any other provisions of the contract.

You're off the hook (this time). :p

LOL Thanks!

You wrote "We never do that". Is this an investment purchase?

No it's not an investment.
We have written, "regardless of appraisal, as long as appraisal isn't lower than $______"
We do that to CYA, but this time my partner forgot that part.

Well, we disputed the appraisal, and got it raised so it was only $7,000 less than contract price. I negotiated with the listing agent, we both gave up $750 comission to save it, but we're still going to close next Wednesday. Whew!