If a buyer signed a VA loan contract prior to receiving a CRV, what is his right?

The correct answer highlights that if a buyer signed a VA loan contract before receiving a Certificate of Reasonable Value (CRV), he has specific rights regarding the purchase price. The CRV determines the appraised value of the property, which is crucial for VA financing.

If the buyer's contract includes a contingency clause that allows them to cancel the agreement if the CRV falls below the purchase price, then they have the right to cancel the contract. This ensures that the buyer is protected, as they should not be obligated to proceed with a purchase that does not meet the value set by the VA-approved appraisal. This safeguard exists because VA lenders will only finance up to the amount stated in the CRV, and a lower CRV may indicate that the property is not worth the agreed-upon purchase price.

In contrast, the other options imply different rights or obligations that do not align with the stipulations typically associated with VA loans and CRVs. For instance, simply proceeding with the purchase regardless of the CRV removes the buyer's right to protect their investment, while being forced to accept the CRV value without any recourse would negate the purpose of obtaining a CRV in the first place. Renegotiating the price before closing could be an option