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?
Correct Answer
C) Yes, the buyer may terminate within the inspection contingency period if the parties cannot agree on a resolution
Under the PAR inspection contingency, if the buyer and seller cannot agree on a resolution regarding inspection findings, the buyer retains the right to terminate the agreement within the contingency period and receive a full refund of hand money. The buyer is not obligated to accept the seller's counteroffer.
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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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- → 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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- → Under the PAR Agreement of Sale, the agreement includes a mediation clause for resolving disputes before litigation. If both parties agree to mediate, what is the nature of the mediation outcome?
- → A buyer in Pennsylvania defaults on a PA Agreement of Sale by refusing to proceed with the purchase. Under the agreement, the seller elects to retain the hand money as liquidated damages. What does 'liquidated damages' mean in this context?
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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?
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A buyer in Pennsylvania is told by their agent that the Agreement of Sale includes a 'financing contingency.' Which best describes what this contingency does?