PA Agreement of Sale Part 3
A short post today to complete Page 3.
Page continues with Paragraph 7 revised in September 2005 which is a warning about meeting deadlines. If the agreement is contingent upon inspections and/or repairs, insurability, environmental conditions etc, if these are not carried out by the times stated in the agreement it is the same as if the contingency has been waived and the Buyer accepts the property and agrees to the RELEASE stated in Paragraph 27. This is one of the duties of the Buyers agent to make sure you are staying within your time lines and if extensions are needed as a result of discoveries negotiating those or terminating the contract so that the buyer is protected.
Paragraph 8 added in September 2005 deals with Property Insurance Availability. Option is to waive or elect. This paragraph allows the buyer to make sure the property is insurable with conditions that are reasonably acceptable to the buyer. As stated above this is a new paragraph and has not seen a courtroom as yet. It most likely will get tightened up as a result of a lawsuit as the language is too loose and allows a buyer room to get out of a contract if they wish. Sub paragraphs deal with steps as a result of the findings, A is acceptance; B Termination in writing with all monies returned to buyer according to the terms of paragraph 30; C enter into a mutually acceptable written agreement. If the buyer and seller do not reach a mutually written agreement during the contingency period and buyers does not terminate the agreement then as stated above in Paragraph 7 buyer accepts the property and agrees to the Release in paragraph 27.
Paragraph 9 revised in September 2005 deals with Inspections. There are five sub paragraphs. Paragraph A states that the seller will provide access to those who are making inspections. This also applies if the buyer is obtaining a mortgage. If the mortgage contingency is not elected make sure your agent specifies that access is given to appraisers if you are going to get a mortgage but the agreement is not contingent upon that. Buyers may also attend any inspections. Paragraph B allows the buyer to make a pre-settlement walk through inspection, even if all other contingencies are waived. Paragraph C states that seller will have heating and all utilities including fuel on for all inspections. Paragraph D allows any of those professionals making inspections to provide a copy of the inspection to the broker for the buyer. Paragraph E allows the seller to obtain without cost a copy of any inspection report from the party for whom it was prepared. Often if a deal falls apart it is important to now the reasons. Buyers usually resent handing over their inspection reports as they have paid for them, but this paragraph is clear in its wording that sellers can ask for it without charge.
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