A buyer in Pennsylvania enters into a PA Agreement of Sale with a mortgage contingency. The buyer receives a conditional mortgage commitment that requires the buyer to pay off an existing car loan before closing. The buyer refuses to pay off the car loan. Can the buyer invoke the mortgage contingency to terminate?
Correct Answer
C) No, because the buyer failed to act in good faith by refusing to satisfy a reasonable lender condition
The mortgage contingency requires the buyer to act in good faith to obtain financing. Refusing to satisfy a reasonable lender condition (paying off a car loan) demonstrates a lack of good faith. The buyer cannot invoke the mortgage contingency after failing to cooperate with the lender's reasonable requirements.
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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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Previous Question
A buyer in York County, PA has an inspection contingency with a 15-day period. The buyer hires a home inspector on day 3. The inspector's report is delayed and not received until day 14. The buyer submits repair requests on day 15. Is the buyer's request timely?
Next Question
A buyer in Delaware County enters into a PA Agreement of Sale with an inspection contingency. The buyer's home inspector discovers that the property has polybutylene plumbing. The buyer requests full replacement. The seller offers a $3,000 credit instead. The buyer rejects the credit and wants to terminate. Can the buyer terminate under the inspection contingency?