1. (a) Before property is purchased it shall be appraised by one of the board's appraisers. The appraisal has no connection with the negotiations between the veteran and the seller regarding the purchase price. It is made exclusively for the board to ensure that its investment will be properly secured. A tract of land may have a specific value to a particular veteran which is greater than the amount which the board will invest in the property. In this event the veteran must pay the cash difference between the board's loan amount and the purchase price.
2. (b) If the appraisal amount is less than the purchase price agreed upon, the veteran may cancel the transaction. The veteran should provide a written cancellation notice to the seller and the board and request that the board return his down payment and the unused portion of the fee deposits.
3. (c) Each veteran must personally accompany one of the board's appraisers on a physical inspection of the land to be purchased. However, in the case of a veteran stationed outside the continental U.S., the veteran may have his or her personal representative inspect the land with the appraiser.
4. (d) Any improvement existing on the land may be considered by the board in making the appraisal. If improvements are considered in determining the value of the property, the board may in accordance with 175.6(c) of this title (relating to Commitment by the Board) require the purchase of an insurance policy covering fire and hazard losses.

Source Note:The provisions of this §175.5 adopted to be effective March 11, 1986, 11 TexReg 1005.