PA Agreement of Sale Part 6
We are nearing the end, I promise. Sorry this has taken so long to post in its entirety, let me know if this helps. Sometimes trying to explain it is as wordy as what you are trying to explain or worse. There is an official explanation that you can purchase which is available from Pennsylvania Association of Realtors.
Page 6 continues with Paragraph 15 dealing with the Status of Sewer. The type of sewer system is marked in part A. Part B deals with Individual On-Lot Sewage Disposal Inspection Contingency. The contingency is waived or elected. If elected an inspection period is selected. The inspection is carried out at the buyer's expense. However, the seller will at his expense will locate and provide access, and if required by the inspection company will empty the sewage system. Seller is also responsible to restore the property prior to settlement. If the inspection reveals defects the buyer within the inspection period selected has the options we have discussed before; Option 1 and Option 2. Under this contingency Option 2 gives the seller 25 days from receiving the report to give the buyer a written corrective proposal. The buyer then has 5 days to respond after receiving the proposal or if the buyer does not receive a proposal the buyer will notify the seller of his choice in writing. These choices are to agree to the terms of the proposal and agree to our now famous release in paragraph 27. Or terminate the agreement in writing with all deposit monies returned to the buyer per the terms of paragraph 30 of this agreement. Alternatively, the buyer can accept the property and the existing system and agree to the release in paragraph 27 and correct any defects before settlement if required by any government agency or mortgage company. This is done at the buyers expense but the seller will give permission and access to the property. If seller denies permission or access to correct the defects Buyer may within 5 days terminate the contract in writing with all monies returned to the buyer per paragraph 30 of this agreement.
Paragraph 16 is a statement about Home Warranties. At or before settlement either the buyer or seller has the opportunity to buy a home warranty for the property from a Third party vendor. This home warranty does not alter responsibility to disclose defects by the seller and do not cover any pre-existing defects. Neither does it alter. Waive or extend any of the time periods of the contingencies in the agreement. It also states that the broker ordering the home warranty may possibly be paid a fee by the home warranty company.
Paragraph 17 deals with Zoning classification and verification of use contingency. Paragraph A states that failure to state the zoning classification will render the agreement VOIDABLE at buyer's option and if voided all deposits will be returned to the buyer without any requirement for court action. This applies except if the property, and each parcel if sub-dividable is zoned primarily to permit single family dwellings. So make sure this is completed if you are selling a town home, condo, multi-family building or multi-use property. Paragraph B specifies the contingency period the default of which is 7 days and that verification is carried out at buyer's expense to verify the present use of the property is permitted. In the event the use is not permitted buyer will notify the seller within the contingency period in writing that the present use is not permitted and that the buyer will either accept the property according to the release of paragraph 27 or terminate the agreement with all deposit monies returned to the buyer according to the terms of paragraph 30 of the agreement. If the buyer does not respond within the contingency period or does not terminate the agreement in writing to the seller within the contingency period they accept the property according to the terms of paragraph 27.
The bottom of the page starts Paragraph 18 Notices, Assessments & Certificates of Occupancy but as most of this is on the following page we will deal with it in part 7.