A buyer in Pennsylvania purchases a property contingent on obtaining FHA financing. The FHA appraisal identifies health and safety issues that must be corrected before the loan can close. The seller refuses to make the required repairs. What is the buyer's best course of action?
Correct Answer
B) Exercise the mortgage contingency to terminate the agreement since FHA financing cannot be obtained without the repairs
If FHA financing cannot be obtained because the seller refuses to make required repairs identified in the FHA appraisal, the mortgage contingency is not satisfied. The buyer may exercise the contingency to terminate the agreement and receive a refund of hand money, since the specified FHA financing cannot be obtained.
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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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Previous Question
Under the PAR Agreement of Sale, the buyer has an inspection contingency with a 10-day inspection period. On day 8, the buyer submits a repair request. The seller does not respond by the end of day 10. What happens under the standard PAR provisions?
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A buyer in Chester County includes a radon contingency in the PA Agreement of Sale. The radon test results come back at 3.5 pCi/L. Under EPA guidelines and the radon contingency, what is the buyer's position?