What Is an Appraisal Contingency in a Florida Contract?

Short answer

An appraisal contingency lets the buyer cancel and get the deposit back if the home appraises below a set value. In Florida it is added with the FR/BAR Appraisal Contingency Rider (Rider F): if the value blank is empty it defaults to the purchase price, and if the date blank is empty the appraisal deadline is 10 days before closing (as of November 2026). Without it, the standard financing contingency does not let you walk away just because the value came in low.

Definition

A contract rider that makes the purchase depend on the appraised value meeting a stated number. If it comes in lower, the buyer can terminate with a refund or waive and continue.

Worked example

Example only: price $500,000, Rider F value left blank (so $500,000), closing June 30. The appraisal comes back at $480,000 on June 12. The buyer sends the seller a copy within 3 days and, in writing, either terminates and gets the deposit back, or waives and keeps going. If they keep going, they cover the $20,000 appraisal gap with cash, a price cut or a mix, because the lender sizes the loan on the lower value.

How Rider F works, step by step

Based on the FR/BAR Appraisal Contingency Rider (Rev. 10/21 copy reviewed):

• Fill in the value (blank = purchase price) and the date (blank = at least 10 days before closing).
• If the appraisal is below the value, deliver a copy to the seller within 3 days after that date.
• Send written notice: terminate (deposit refunded, both sides released) or waive and continue.
• If you do not get the appraisal on time, or get it and miss the notice, the contingency is waived automatically.

Partial waivers and gap clauses

Instead of dropping the rider, some buyers set the value below the price, for example $490,000 on a $500,000 offer, so they agree to cover up to $10,000 of a gap but can still cancel on a bigger miss. Run the math on cash to close and LTV before choosing a number.

In South Florida

Florida Realtors explains that under the financing contingency (Paragraph 8(b)) the appraisal only has to be satisfactory to the lender, regardless of amount, and the appraisal value is excluded from the conditions that protect your deposit later. That is why Rider F matters in competitive Miami, Broward and Palm Beach offers, where sellers often push buyers to drop it. If you waive it, know how much cash you can add before you sign. FHA and VA buyers also have value protection through the FR/BAR FHA/VA rider. General information, not legal advice.