The 2007 GAR Purchase and Sale Agreement can be confusing unless you read, re-read and then ask a real estate professional for advice - especially in terms of the financing contingency.  We need to be careful in the time period allowed to satisfy the contingency.  If a short time period is involved, make sure that the contract contains a separate special stipulation making the Buyer's obligation to close contingent on the appraisal.

Case in point:  Buyer has 7 days to meet the financing contingency as per the Purchase and Sale Agreement,  Buyer is financially qualified for a mortgage for the sales price of the home.  The day after the financing contingency has "been met," Buyer finds out that the property appraises about $30K under the sales price.  Buyer notifies Seller (through their respective agents) of the discrepancy.  Seller responds that the financing contingency period has come and gone.  What does this mean to the Buyer with no special stipulation in place?

 It means, the Buyer can either make up the difference between the appraisal price and sales price out of pocket; OR, forfeits his/her earnest money.by walking away. 

This scenario becomes extremely relevant for those who are unrepresented Buyers.  Please do yourselves a favor and work with a professional REALTOR®!