Kevin enters into a PA Agreement of Sale to purchase a home for $350,000. The agreement states that time is of the essence. Kevin fails to secure financing by the specified deadline but asks the seller for a 10-day extension. What is the seller's legal position?
Correct Answer
C) The seller may declare the buyer in default and terminate the agreement
When a PA Agreement of Sale contains a 'time is of the essence' clause, deadlines are strictly enforceable. If the buyer fails to meet a contractual deadline such as the financing contingency date, the seller may declare the buyer in default and terminate the agreement.
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- → In Pennsylvania, the Statute of Frauds requires that real estate contracts be in writing. Which of the following contracts is subject to this requirement?
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- → A buyer in Lancaster County signs a PA Agreement of Sale. The agreement includes a provision allowing the buyer to assign the contract to another party. Under Pennsylvania law, which statement about contract assignment is correct?
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