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?
Correct Answer
B) The seller bears the risk of loss until legal title is transferred at settlement
Pennsylvania follows the Uniform Vendor and Purchaser Risk Act (68 Pa.C.S. §7501), which places the risk of loss on the seller until legal title or possession is transferred to the buyer. Since the buyer has not yet received title or taken possession, the seller bears the risk of the fire damage.
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- → A buyer in Montgomery County defaults on a PA Agreement of Sale. The seller wants to pursue both liquidated damages (retaining the hand money) AND actual damages through a lawsuit. Under PA law, can the seller do both?
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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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Previous Question
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?
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Michael, a broker in Pennsylvania, holds a $15,000 hand money deposit in escrow. After the transaction falls apart, both the buyer and seller claim entitlement to the deposit. What should Michael do?