A buyer in Pennsylvania has a mortgage contingency in the PAR Agreement of Sale specifying a VA loan. The VA appraisal includes a Tidewater notice, indicating the appraiser believes the value may be below the purchase price. After review, the appraisal comes in $15,000 below the purchase price. Under the VA loan program and the PA Agreement of Sale, what are the buyer's options?
Correct Answer
A) The buyer may negotiate a lower price, pay the difference in cash, or terminate using the VA escape clause or mortgage contingency
Under the VA loan program, the VA escape clause protects the buyer from being obligated to purchase at a price exceeding the appraised value. The buyer may negotiate a lower price with the seller, pay the difference in cash (if permitted), or terminate using either the VA escape clause or the mortgage contingency in the PA Agreement of Sale.
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More Pa Specific Contract Provisions Questions
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A buyer in Pennsylvania is purchasing a townhouse. The Agreement of Sale includes an HOA contingency. The buyer receives the HOA documents and discovers monthly dues of $450 and a pending special assessment of $5,000. Under the contingency, what can the buyer do?
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A seller in Pennsylvania accepts an offer that includes a home sale contingency. Two weeks later, the seller receives a better offer from another buyer without any contingencies. Under the PAR Sale of Buyer's Property Contingency Addendum, what process must the seller follow?