A buyer in Lehigh County, PA has a mortgage contingency specifying a conventional loan at no more than 6.5% interest for 30 years. The buyer receives a commitment at 6.75%. Under the PAR Agreement of Sale, what should the buyer do?
Correct Answer
D) Notify the seller that the mortgage contingency has not been satisfied and exercise the right to terminate
Under the PAR mortgage contingency, if the buyer cannot obtain financing at or below the specified terms (6.5% in this case), the contingency is not satisfied. The buyer may notify the seller and exercise the right to terminate the agreement and receive a refund of hand money.
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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 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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Under the PAR Agreement of Sale, which of the following is NOT a standard contingency that a buyer may include in the contract?
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A buyer in Pennsylvania wants to include a contingency in the Agreement of Sale that requires the property to pass a water quality test for the private well. Where should this contingency be documented?