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?
Correct Answer
B) The seller must provide the first buyer with written notice and a specified time to remove the contingency
Under the PAR Sale of Buyer's Property Contingency Addendum with a kick-out clause, the seller must provide the first buyer with written notice (typically 48-72 hours) to remove the home sale contingency. Only if the first buyer fails to remove the contingency within the notice period may the seller terminate the first agreement and accept the second offer.
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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 Blair County closes on a property and later discovers the seller's real estate agent knew about a major plumbing defect but did not disclose it. The buyer sues both the seller and the agent. If the buyer obtains a judgment against the agent but the agent cannot pay, what is the maximum the buyer can recover from the PA Real Estate Recovery Fund per transaction?
- → 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?
- → A buyer in Erie County wants to know who decides if a breach of the Agreement of Sale has occurred. Under PA law, who makes this determination?
- → A buyer in Cambria County wants to sue a seller for breach of the PA Agreement of Sale. The buyer's attorney recommends filing in the Court of Common Pleas. What type of court is the Court of Common Pleas in Pennsylvania?
- → A buyer defaults on a PA Agreement of Sale with a purchase price of $380,000. The hand money deposit is $12,000 (retained by the seller as liquidated damages). The seller relists and sells the property 4 months later for $365,000, incurring $6,000 in additional carrying costs and $4,500 in remarketing expenses. If the seller had pursued actual damages instead of liquidated damages, what is the total potential actual damage claim?
- → In Pennsylvania, the Statute of Frauds requires that real estate contracts be in writing. Which of the following contracts is subject to this requirement?
- → Under the PAR Agreement of Sale, which of the following is NOT a standard remedy available to the seller when a buyer defaults on the contract?
- → 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?
- → Michael, a broker in Pennsylvania, holds a $15,000 hand money deposit in escrow. After the transaction falls apart, both the buyer and seller claim entitlement to the deposit. What should Michael do?
- → 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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Previous Question
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?
Next Question
A buyer in Northampton County, PA includes a contingency for satisfactory review of the property's Certificate of Occupancy (CO). The municipality issues a report showing code violations that must be corrected before a CO can be issued. Under the contingency, who is typically responsible for correcting the violations?