A buyer in Pennsylvania has both a mortgage contingency and an appraisal contingency in the Agreement of Sale. The property appraises at full value, satisfying the appraisal contingency. However, the buyer's loan is denied due to a job loss. Can the buyer terminate under the mortgage contingency?
Correct Answer
B) Yes, because the mortgage contingency and appraisal contingency are separate and independent
The mortgage contingency and appraisal contingency are separate and independent provisions in the PAR Agreement of Sale. Satisfying the appraisal contingency (property appraised at value) does not satisfy the mortgage contingency (buyer must obtain a loan commitment). If the buyer cannot obtain financing due to job loss, the mortgage contingency is not met.
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More Pa Specific Contract Provisions Questions
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Under the PAR Agreement of Sale, the inspection contingency allows the buyer to hire inspectors to evaluate various systems. Which of the following inspections is the buyer MOST likely to conduct in a rural Pennsylvania property with a private well and septic system?
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