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?
Correct Answer
D) Yes, because the inspection and appraisal contingencies are independent of each other
The inspection contingency and appraisal contingency in the PAR Agreement of Sale are independent provisions. Satisfying or waiving one contingency does not affect the buyer's rights under another. The buyer can accept the inspection results and still exercise the appraisal contingency.
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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 Dauphin County includes a contingency for the sale of their current home. The contingency states that the buyer must have a binding agreement on their current home within 60 days. On day 55, the buyer receives an offer on their current home but has not yet accepted it. What must the buyer do?