Agreement of Sale pages 9-14

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Questions and Answers

Within how many days should Buyer order a comprehensive title report after the Execution Date of the Agreement?

5 days

14 days

7 days (correct)

10 days

What is the purpose of encouraging Buyer to obtain an owner's title insurance policy?

To protect Seller from claims on the Property.

To ensure Seller's compliance with the Agreement.

To speed up the process of Property transfer.

To protect Buyer from claims and attacks on the title. (correct)

What happens if Seller denies Buyer permission to correct the defects?

Buyer can proceed to correct the defects without permission.

Buyer can terminate the Agreement within 5 days. (correct)

Seller will keep all deposit monies.

Seller will have to return all deposit monies to Buyer.

What is the difference between an owner's title insurance policy and a lender's title insurance policy?

An owner's policy protects the buyer from title claims; a lender's policy protects the lender. Signup and view all the answers

What document has the Buyer received in relation to properties built prior to 1978?

Protect Your Family from Lead in Your Home pamphlet Signup and view all the answers

Who needs to be provided statement of estimated closing costs as per the agreement?

Buyer Signup and view all the answers

Who is responsible for providing the Protect Your Family from Lead in Your Home pamphlet?

Buyers Agent Signup and view all the answers

Under what circumstances might legal proceedings be initiated before the completion of the mediation process?

To prevent the statute of limitations from expiring. Signup and view all the answers

What is the consequence of Seller retaining deposit monies as liquidated damages?

Both Buyer and Seller are released from further liability. Signup and view all the answers

What role do brokers and licensees play regarding unpaid deposits?

They have no responsibility for unpaid deposits. Signup and view all the answers

What is the purpose of the Corrective Proposal (BRI) mentioned in the text?

All of the above Signup and view all the answers

What is the primary purpose of submitting disputes or claims arising from the Agreement to mediation?

To resolve disputes in an alternative manner. Signup and view all the answers

How are mediation fees typically divided among the parties involved in the process?

Equally divided between all parties involved. Signup and view all the answers

What is the duration of the Negotiation Period mentioned in the text?

5 days, if not specified otherwise Signup and view all the answers

When does the Negotiation Period begin, according to the text?

Following the end of the Contingency Period Signup and view all the answers

Under what circumstances can a Broker release deposit monies without a court order?

If the Agreement is terminated before settlement and both parties agree in writing about the deposit monies Signup and view all the answers

What is required for a Broker to distribute deposit monies after receiving them?

A written agreement signed by both Buyer and Seller directing how to distribute the deposit monies Signup and view all the answers

What is evidence that there is no dispute regarding deposit monies if the Agreement is terminated before settlement?

A written agreement signed by both Buyer and Seller Signup and view all the answers

Under what circumstances can a Broker release deposit monies based on a court order?

Only if the court order is a final order Signup and view all the answers

Which statement is true about Pennsylvania law regarding deposit monies?

Pennsylvania law does not allow a Broker to determine who is entitled to the deposit monies when settlement does not occur Signup and view all the answers

There is no mention of whether Seller has received the Consumer Notice as adopted by the State Real Estate Commission.

False Signup and view all the answers

Study Notes

Termination and Return of Deposits

If Buyer denies permission to correct defects, Buyer may terminate the Agreement within 5 days of Seller's denial, with a written notice to Seller, and all deposit monies will be returned according to Paragraph 26.
If Buyer fails to respond within the specified time or fails to terminate the Agreement, Buyer will accept the Property and agree to the release in Paragraph 28.

Titles, Surveys, and Costs

Within 7 days of the Execution Date, Buyer will order a comprehensive title report from a reputable title company and deliver a free copy to Seller.
Buyer is encouraged to obtain an owner's title insurance policy to protect themselves from claims and attacks on the title.

Mediation

Buyer and Seller will submit all disputes or claims to mediation, including disputes over deposit monies.
Mediation will be conducted according to the Rules and Procedures of the Home Sellers/Home Buyers Dispute Resolution System or the local Association of Realtors' mediation system.
Mediation fees will be divided equally among the parties and paid before the mediation conference.

Default, Termination, and Return of Deposits

Where Buyer terminates the Agreement pursuant to any right granted, Buyer will be entitled to a return of all deposit monies paid, and the Agreement will be void.
Regardless of the apparent entitlement to deposit monies, Pennsylvania law does not allow a Broker to determine who is entitled to the deposit monies when settlement does not occur.
Broker can only release the deposit monies under certain conditions, including a written agreement signed by both parties, a final order of court, or a prior written agreement between Buyer and Seller.

Release

Buyer releases, quit claims, and forever discharges Seller, Brokers, licensees, employees, and any other person or entity from any claims, losses, or demands arising from the presence of termites, radon, lead-based paint hazards, mold, fungi, or indoor air quality, environmental hazards, or defects in the on-site sewage disposal system or deficiencies in the on-site water service system.

Special Clauses

The Agreement may include additional clauses, such as a Sale & Settlement of Other Property Contingency Addendum, Appraisal Contingency Addendum, or Short Sale Addendum.

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