Tom submits an offer on a property in Bucks County using the PAR Agreement of Sale. The offer includes a financing contingency requiring Tom to apply for a mortgage within 5 days and obtain a commitment within 45 days. Tom applies on day 6. Under the agreement, what is the seller's position?
Correct Answer
B) The seller may declare the buyer in default for failing to apply within the required timeframe
Under the PAR Agreement of Sale, the buyer has specific obligations within the financing contingency, including applying for the mortgage within the stated number of days. Failure to apply on time constitutes a breach, and the seller may declare the buyer in default.
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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:
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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 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?
- → 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?
- → 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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- → A buyer in Pennsylvania defaults on a PA Agreement of Sale by refusing to proceed with the purchase. Under the agreement, the seller elects to retain the hand money as liquidated damages. What does 'liquidated damages' mean in this context?
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