Contracts
A Pennsylvania Agreement of Sale for new construction typically includes a contingency for:
AExisting home sale by the builder
BBuyer's financing and certificate of occupancy issuance✓ Correct
CAppraisal only — no other contingencies are allowed
DSeller's right to cancel if construction costs increase
Explanation
New construction contracts in Pennsylvania typically include a financing contingency and a certificate of occupancy contingency — closing occurs only when the municipality issues a CO certifying the new home meets code. Without a CO, the home legally cannot be occupied.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
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