A buyer in Schuylkill County, PA enters into an Agreement of Sale with a mine subsidence insurance contingency. The buyer discovers that the property is in a mine subsidence risk area but that mine subsidence insurance is available through the PA Mine Subsidence Insurance (MSI) program at an annual premium of $800. Under the contingency, what should the buyer consider?
Correct Answer
C) The buyer should evaluate the mine subsidence risk, insurance availability, cost, and coverage limitations before deciding whether to proceed
The buyer should carefully evaluate the mine subsidence risk, the availability and cost of MSI insurance, and any coverage limitations before deciding whether to proceed or terminate under the contingency. The PA Mine Subsidence Insurance program provides coverage, but the buyer should understand the full scope of risk and protection.
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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?
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A buyer in Carbon County has a mortgage contingency in the PA Agreement of Sale specifying an FHA loan with 3.5% down payment. The lender offers the buyer a conventional loan with 5% down payment instead. Under the mortgage contingency, what is the buyer's position?