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?
Correct Answer
B) The buyer may invoke the contingency because the offered loan does not match the specified terms
The mortgage contingency specifies FHA financing with 3.5% down payment. A conventional loan with 5% down does not match the specified terms. The buyer may invoke the contingency because the specified financing was not obtained, and the buyer is not obligated to accept different loan terms.
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Previous Question
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?
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Under the PAR Agreement of Sale, which of the following is NOT a reason that would allow a buyer to exercise the inspection contingency to terminate the agreement?