Under the PAR Agreement of Sale, all of the following are obligations of the buyer under the mortgage contingency EXCEPT:
Correct Answer
A) Guaranteeing that the mortgage will be approved by the lender
The buyer cannot guarantee mortgage approval because the lending decision is made by the lender based on underwriting criteria. The buyer's obligation is to apply in good faith and cooperate with the lender, not to guarantee approval.
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More Pa Specific Contract Provisions Questions
A licensed salesperson in Pennsylvania mishandles the hand money deposit by depositing it into their personal account instead of the broker's escrow account. The buyer later defaults, and the deposit is not fully available. What are the consequences for the salesperson?
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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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Previous Question
In a Pennsylvania transaction, the buyer wants to make the purchase contingent on the property passing a termite inspection. Under the PAR Agreement of Sale, what is this type of inspection called?
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A buyer in Montgomery County purchases a property with a PA Agreement of Sale that includes both an inspection contingency and an appraisal contingency. The inspection reveals minor cosmetic issues, and the buyer accepts the property condition. However, the appraisal comes in $20,000 below the purchase price. Can the buyer still exercise the appraisal contingency?