A buyer in Centre County, PA includes an appraisal contingency in the Agreement of Sale for a property priced at $325,000. The appraisal comes in at exactly $325,000. Is the appraisal contingency satisfied?
Correct Answer
A) Yes, because the appraisal meets or exceeds the purchase price
The appraisal contingency is satisfied when the appraised value meets or exceeds the purchase price. Since the appraisal of $325,000 equals the purchase price of $325,000, the contingency is satisfied.
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A buyer in Erie County enters into a PA Agreement of Sale with a septic contingency. The septic inspection reveals the system is functioning but is non-compliant with current PA DEP regulations. The seller argues the system was compliant when installed 20 years ago. What is the buyer's position under the contingency?
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