Under the PAR Agreement of Sale, the buyer agrees to deliver hand money to the broker within a specified number of days after the fully executed agreement. If the agreement does not specify a timeframe, when is the hand money typically due?
Correct Answer
D) Within 10 business days after the fully executed agreement
Under the PAR Agreement of Sale, if no specific timeframe is stated, the hand money deposit is due within the number of days specified in the standard form (typically 10 business days) after the agreement is fully executed by all parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
More Pa Specific Contract Provisions Questions
Under the PAR Agreement of Sale, all of the following are obligations of the buyer under the mortgage contingency EXCEPT:
A licensee in Pennsylvania is preparing a PA Agreement of Sale that includes an option for the buyer to purchase the property within 90 days. What makes an option contract valid in Pennsylvania?
A seller in Lehigh County discovers that the buyer has been secretly negotiating to purchase a different property while under contract. The buyer has not yet breached any deadlines. Can the seller declare the buyer in default?
A licensed salesperson in Pennsylvania mishandles the hand money deposit by depositing it into their personal account instead of the broker's escrow account. The buyer later defaults, and the deposit is not fully available. What are the consequences for the salesperson?
A buyer in Schuylkill County enters into a PA Agreement of Sale for a property that was listed as having 3 acres. After closing, the buyer discovers the property is only 2.5 acres based on a new survey. The Agreement of Sale did not include a survey contingency. What remedy may the buyer pursue?
- → A buyer in Westmoreland County has an inspection contingency that expires in 5 days. The buyer has not yet scheduled an inspection. On day 4, the buyer asks the seller for a 10-day extension. The seller refuses. What happens?
- → A buyer in Lycoming County has an inspection contingency in the PA Agreement of Sale. The buyer's inspector recommends that a licensed electrician evaluate the electrical panel. The buyer schedules an electrician, but the seller refuses access for the follow-up inspection within the contingency period. What is the buyer's best course of action?
- → A buyer in Blair County closes on a property and later discovers the seller's real estate agent knew about a major plumbing defect but did not disclose it. The buyer sues both the seller and the agent. If the buyer obtains a judgment against the agent but the agent cannot pay, what is the maximum the buyer can recover from the PA Real Estate Recovery Fund per transaction?
- → A buyer in Pennsylvania purchases a property contingent on obtaining FHA financing. The FHA appraisal identifies health and safety issues that must be corrected before the loan can close. The seller refuses to make the required repairs. What is the buyer's best course of action?
- → Under the PAR Agreement of Sale, the buyer has an inspection contingency with a 10-day inspection period. On day 8, the buyer submits a repair request. The seller does not respond by the end of day 10. What happens under the standard PAR provisions?
- → A buyer in Dauphin County wants to know what happens to the hand money if both the buyer and seller agree to cancel the PA Agreement of Sale by mutual consent. What is the typical outcome?
- → A buyer in Erie County wants to know who decides if a breach of the Agreement of Sale has occurred. Under PA law, who makes this determination?
- → A buyer in Cambria County wants to sue a seller for breach of the PA Agreement of Sale. The buyer's attorney recommends filing in the Court of Common Pleas. What type of court is the Court of Common Pleas in Pennsylvania?
- → A buyer defaults on a PA Agreement of Sale with a purchase price of $380,000. The hand money deposit is $12,000 (retained by the seller as liquidated damages). The seller relists and sells the property 4 months later for $365,000, incurring $6,000 in additional carrying costs and $4,500 in remarketing expenses. If the seller had pursued actual damages instead of liquidated damages, what is the total potential actual damage claim?
- → Under the PAR Agreement of Sale, which of the following is NOT a standard remedy available to the seller when a buyer defaults on the contract?
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Previous Question
A PA Agreement of Sale includes the statement: 'This property is being sold AS-IS.' The buyer later discovers a hidden defect that the seller knew about but did not disclose on the Seller's Property Disclosure. Can the buyer still pursue a claim?
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A buyer and seller in Pennsylvania execute an Agreement of Sale. Before closing, the property is significantly damaged by a fire. Under Pennsylvania's Uniform Vendor and Purchaser Risk Act, who bears the risk of loss?