A buyer in Pennsylvania purchases a property and discovers shortly after settlement that the property has a right-of-way easement that was not disclosed in the Agreement of Sale. The easement allows a neighbor to access a rear parcel through the buyer's property. Under PA law, what is the buyer's potential claim?
Correct Answer
B) The buyer may have a claim for breach of the covenant against encumbrances if a general warranty deed was delivered
If a general warranty deed was delivered at settlement, it includes a covenant against encumbrances. An undisclosed easement that encumbers the property could constitute a breach of this covenant, giving the buyer a potential claim against the seller.
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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?
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A buyer and seller in Pennsylvania enter into an Agreement of Sale. The buyer wants to include a contingency that allows termination if the property is located in a flood zone. Under the PAR Agreement of Sale, which statement about flood zone provisions is accurate?