An Explanation of the Pennsylvania Agreement of Sale Part 7

By
Real Estate Agent with Long & Foster Real Estate Inc

PA Agreement of Sale Part 7

Part 1

Part 2

Part 3

Part 4

Part 5

Part 6

Part 8

Part 9

Paragraph 18 handles Notices, Assessments & Certificates of Occupancy. Sub-paragraph A deals with the seller representing that no public improvements or assessments by condominium and home owner associations have been made that remain unpaid and that no notice relating to zoning violations or other ordinances remain uncorrected unless specified in the space provided. For example if there is a fire wall assessment that is split into several equal installments that is being paid off, this is where the remaining payments would be identified. Paragraph B is a catch all space allowing any other notices or assessments the seller is aware of to be entered. Paragraph c handles any notices that are received after the agreement of sale is ratified and before settlement. Seller is expected to provide a copy of any notices and or assessments to the buyer and will notify buyer in writing of receipt of these within 5 days if the seller is going to 1) fully comply at sellers expense before settlement; in which case the buyer accepts the property and agrees to the release in paragraph 27. 2) Seller will not comply, or fails to notify the buyer within the specified time buyer will in writing within 5 days notify seller that buyer will a) comply at buyer's expense and accept the property agreeing to our famous paragraph 27 release, or b) terminate the agreement in writing with all deposit monies returned to the buyer according to the terms of paragraph 30.

However, if the Buyer fails in the time stated to respond or fails to terminate in writing to the seller buyer will accept the property and agree to the release in paragraph, yes that's right, 27. So you see how important time and date is of the essence in this agreement and why you need a good agent who keeps track of all these times and dates for you accurately. Many lawsuits revolve around these issues.

Paragraph D handles the ordering of any certificate of occupancy that is required by the local municipality. This needs to be done within 30 day from the date of execution of the agreement but no later than 15 days before settlement. This is paid for by the seller and the paragraph specifies the responsibilities of the seller to notify the municipality of any uncorrected violations. If the buyer receives a notice of any required repairs buyer will promptly deliver a copy to the seller. Witih 5 days of this notice from the municipality seller will notify the buyer in writing if they will A) make the required repairs/improvements and the buyer then accepts the property and agrees to the release in paragraph 27. B) Not make the required repairs which gives the buyer 5 days to decide and notify the seller in writing if he will make them at buyer's expense and seller will give permission and access to the property or terminate the agreement in writing according to the terms of paragraph 30 deposit monies will be returned to the buyer.

Again, if the buyer does not respond within the time stated or fails to terminate the agreement in writing to the seller with that time buyer will accept the property and agree to the release in paragraph 27 and buyer accepts responsibility to perform the repairs according to the terms of the municipality.

But, if the seller denies the buyer permission to make the required repairs or improvements or does not give access for the same buyer may within 5 days terminate the agreement in writing to the seller with all deposit monies returned to the buyer according to paragraph 30.

Sub paragraph 3 says If repairs/improvements are required and seller does not notify or provide a copy to the buyer as required above seller will perform all repairs and improvements as required at seller's expenses. Paragraph 18 D 3 survives settlement.

Paragraph E deals with access to a public road may require issuance of a highway occupancy permit from the Dept. of Transport.

Paragraph 19 is titled Title, Surveys and Costs. Paragraph A) states the property will be transferred with a good and marketable title as is insurable by a reputable title insurance company at regular rates free of restrictions, liens encumbrances and easements, EXCEPT existing deed restriction, historic preservation restrictions or ordinances etc. Paragraph B) identifies the buyer as being responsible for the paying for 1) Title search, title insurance, and/or mechanics' lien insurance or any fee for cancellation; 2) Flood insurance, fire insurance with extended coverage, mine subsidence insurance or any fee for cancellation; 3) Appraisal fees and any fees paid in advance to mortgage lenders; 4) buyers customary closing costs and accruals. Paragraph C) sates that if a survey or surveys are required by the title insurance company or the abstracting attorney to prepare an adequate legal description of the property these will be paid for by the Seller. But if the buyer or their mortgage company require a survey this will be paid for by the buyer. Paragraph D) handles if the title is not good and marketable. The buyer can accept the property with such title as the seller can give and agrees to the release of paragraph 27 or terminate the agreement in writing to the seller with all deposit monies returned to the buyer as per the terms of paragraph 30. Upon termination seller will reimburse buyer for any costs incurred by the buyer for inspections, certifications obtained as per the agreement and for the items identified in this paragraph. Paragraph E) states the property is not a recreational cabin as defined in the PA Construction Code Act unless stated here.

Paragraph 20 handles Condominium/Planned community Resale Notices. These are either Not Applicable or applicable to a Condominium or Applicable to Planned community (Homeowner Association). If a Condominium then Section 3407 of the Uniform Condominium act of PA requires to be furnished by the seller a Certificate of Resale and copies of the condominium declaration, bylaws and rules and regs. of the association. If a Planned community then section 5407 of the Uniform Planned community Act requires seller to privde buyer with a copy of the declaration, bylaws, rules and regs. of the association and a certificate containing the provisions set forth in 5407 (a) of the act.

If the property is part of a condominium or planned community, Paragraph A) says the seller will within 15 days of the execution of the agreement at seller's expense order a certificate or resale and any other documents necessary to enable seller to comply with the act. The association is required to provide these within 10 days of seller's request. Total 25 days maximum for the seller to receive these documents plus a day or two for delivery. Paragraph B) requires the seller to hand these documents over to the buyer promptly upon receipt, but seller is not liable for the failure of the association to provide the documents in a timely manner, nor if the information in the documents is incorrect. Paragraph C) allows the buyer to VOID the agreement at any time before the buyer receives the association documents and for 5 days after receipt or until settlement which ever occurs first. Buyer must terminate in writing. Upon termination all deposit monies are returned to the buyer according to the terms of paragraph 30. Paragraph D) deals with if the association has the right to purchase the property, right of first refusal, and if they exercise this right seller will reimburse buyer for any costs incurred for inspections or certifications obtained according to the terms of the agreement and any costs incurred by buyer for title search, title insurance mechanics lien insurance fees for cancellation, flood insurance etc and appraisal fees or charges paid in advance to the mortgage lender.

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Ambassador
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
Nick & Trudy - I'm going to bookmark this as a reference, very valuable info....thanks!
Dec 02, 2007 11:28 AM #1
Rainmaker
291,976
Nick & Trudy Vandekar
Long & Foster Real Estate Inc - Devon, PA
Realtors - Selling the Main Line, PA Lic AB067198
Thanks for the comment Jason. I am in the process of placing the links to the other parts. I have been lazy in doing that. It will basiaclly be a 10 part series on the 10 pages of the agreement. When i finish i will go back through it and edit to make it as brief as possible and make sure I am not just muddying the waters for people.
Dec 03, 2007 08:46 AM #2
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Rainmaker
291,976

Nick & Trudy Vandekar

Realtors - Selling the Main Line, PA Lic AB067198
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