The first contract is binding. The seller cannot sign another contract for the same property unless the first contract is properly terminated. The backup offer is just that—an offer that becomes primary only if the first contract falls through. The agent must allow the first buyer’s contingency period to expire or be waived before taking any action that could jeopardize the initial agreement.

The final walk-through is to verify the property is in the condition agreed upon in the contract. If included personal property is not in working order, it constitutes a breach of the contract terms. The buyer has the right to delay closing until the issue is resolved, typically through repair, replacement, or a financial adjustment at the settlement table.

A licensee must provide competent advice. The only reliable way to assess the risk of future development is to understand the legal parameters governing the land. Zoning ordinances and the municipal master plan are public records that dictate what can be built, providing the client with factual information to make an informed decision.

The agent has a duty to provide competent pricing advice based on data (the CMA). However, the seller client ultimately sets the price. The agent must educate the client on the market implications of overpricing. If the seller insists, the agent may take the listing at the seller’s price but must document this instruction in writing to demonstrate they provided proper counsel, thus fulfilling their fiduciary duty of obedience to the client’s lawful instruction.

A buyer agency agreement is the contract that creates the agency relationship. It specifies that the salesperson and their broker are acting as the agent (fiduciary) for the buyer, not the seller. It outlines the duties of loyalty, confidentiality, disclosure, obedience, accounting, and reasonable care owed to the buyer client.

Licensees must disclose material facts. A significant increase in crime that is not readily observable is generally considered a material fact affecting the value or enjoyment of the property. The duty to disclose known material facts to your client is a core fiduciary obligation, superseding concerns about ‘steering,’ which relates to discriminatory practices in housing choice.

The Pennsylvania Real Estate Seller Disclosure Law mandates that sellers complete a property disclosure statement. This form requires the seller to disclose their knowledge of material defects regarding the home’s systems (plumbing, electrical, HVAC), structure, water intrusion, environmental hazards, and other known issues. It is not a warranty but a statement of the seller’s knowledge.

This is a home sale (or sale of buyer’s property) contingency. The primary risk to the seller is that their property is effectively off the market while the buyer tries to sell their own home. If the buyer’s home doesn’t sell, the contract can fall through, causing the seller to lose market time and potentially other qualified buyers who are not contingent on a sale.

Prorations for items like property taxes, homeowner association fees, and fuel oil in a tank are calculated and adjusted at settlement. This task is performed by the settlement agent (often a title company or attorney) conducting the closing. They ensure the seller pays for their portion of the year up to the closing date, and the buyer pays from closing forward.

The first contract is binding. The seller cannot sign another contract for the same property unless the first contract is properly terminated. The backup offer is just that—an offer that becomes primary only if the first contract falls through. The agent must allow the first buyer’s contingency period to expire or be waived before taking any action that could jeopardize the initial agreement.0