A buyer in Cumberland County has a mortgage contingency for a USDA Rural Development loan in the PA Agreement of Sale. The property is located in an area that was recently reclassified as non-eligible for USDA financing. What is the buyer's position?
Correct Answer
C) The buyer may invoke the mortgage contingency because the specified financing cannot be obtained for this property
If the mortgage contingency specifies USDA financing and the property is no longer eligible for USDA loans, the specified financing cannot be obtained. The buyer may invoke the mortgage contingency to terminate the agreement and receive a refund of hand money.
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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 is purchasing a home built in 1965. Under federal law and the PAR Agreement of Sale, what disclosure must the seller provide regarding lead-based paint?
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A buyer in Lancaster County has both an inspection contingency and a radon contingency in the PA Agreement of Sale. The home inspection reveals minor issues that the buyer accepts. The radon test shows 8.5 pCi/L. Can the buyer request radon mitigation even though the inspection contingency issues were accepted?