The Pennsylvania residential real estate purchase agreement (“property sales agreement”) enables a prospective home buyer to establish a legal arrangement with a seller for the acquisition of real estate. The agreement addresses a variety of terms including the purchase price, closing conditions, earnest money, and other financial contingencies.
Ownership of the property can only be transferred lawfully if the buyer and seller consent to the contract terms and inscribe their signatures on the agreement.
Required Seller Disclosures in Pennsylvania
Residential real estate purchase agreements commonly contain promises and provisions guaranteeing a property’s condition. Many states legally require sellers to disclose explicit information concerning a property’s condition. In states where this is required and a seller willfully hides such information, they can be sued for fraud.
In Pennsylvania, sellers are required to complete a real estate purchase agreement and are urged to complete the following disclosure statement for an agreement to be considered legally binding:
Seller’s Property Disclosure Statement. According to Pennsylvania law, before a real estate purchase agreement can be signed, the seller must furnish to the buyer a Property Disclosure Statement mentioning any known material defects which could affect the buyer’s decision to purchase. (§ 7304)