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The Appraisal Contingency Addendum To Agreement Of Sale is a critical document used in German real estate transactions when parties wish to make the purchase contingent upon a professional property valuation. This document becomes necessary when buyers want to ensure the property's value matches or exceeds the purchase price, often required for mortgage financing or investment purposes. It outlines the appraisal process according to German valuation standards (ImmoWertV), specifies timeframes, and details the rights and remedies available to both parties. The addendum must comply with German civil law (BGB) requirements and typically includes provisions for selecting approved appraisers, determining acceptable valuation methods, and establishing clear procedures for various appraisal outcomes. This document is particularly important in protecting buyers from overpaying while giving sellers clarity on the transaction's conditions.

1. Parties: Identification of the buyer and seller, including full legal names and addresses as required under German law

2. Background: Reference to the main Agreement of Sale, including its date and subject property details

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

4. Appraisal Requirement: Details of the required appraisal, including who will conduct it and according to which German valuation standards

5. Timeframe: Specific period within which the appraisal must be completed and results delivered

6. Minimum Appraisal Value: The agreed-upon minimum appraised value that would satisfy the contingency

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

8. Consequences of Appraisal: Actions available to parties based on different appraisal outcomes

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

10. Integration Clause: Statement confirming this addendum as part of the main agreement