A buyer in Pennsylvania waives the inspection contingency in the Agreement of Sale to make a more competitive offer. After the agreement is fully executed, the buyer discovers the furnace is not working. What is the buyer's position?
Correct Answer
D) The buyer has limited recourse because the inspection contingency was waived
When a buyer waives the inspection contingency, they give up the right to terminate based on property condition issues discovered through inspection. The buyer has limited recourse unless the seller committed fraud or failed to disclose a known defect on the Seller's Property Disclosure.
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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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- → 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?
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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?
- → 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?
- → Under the PAR Agreement of Sale, the agreement includes a mediation clause for resolving disputes before litigation. If both parties agree to mediate, what is the nature of the mediation outcome?
- → 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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Previous Question
A buyer in Pennsylvania has an inspection contingency in the PAR Agreement of Sale. The home inspector discovers knob-and-tube wiring throughout the house. The buyer submits a written request for the seller to replace all wiring before settlement. The seller refuses. What are the buyer's options?
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Under the PAR Agreement of Sale, which of the following is NOT a standard contingency that a buyer may include in the contract?