Pennsylvania real estate contract grants buyers rights against nonconforming properties

During the recent Planning Commission meeting held on February 25, 2025, in Crafton Borough, significant discussions centered around the implications of zoning compliance in real estate transactions. The meeting highlighted the critical role that zoning regulations play in property sales and their potential impact on both buyers and sellers.

A key point of discussion was the standard agreement for the sale of real estate in Pennsylvania, which includes provisions that allow buyers to withdraw from a purchase without penalty if the property is found to be nonconforming with zoning laws. This aspect of the contract underscores the risks associated with noncompliance, not only for buyers but also for sellers who may face diminished property values in the marketplace.

The meeting also addressed the contingency clauses within the sales agreement, which permit buyers to make their purchase contingent upon verifying zoning conformity. This means that if any part of the property, such as an accessory structure, does not meet zoning requirements, buyers have the right to back out of the deal. Such provisions reflect the industry's acknowledgment of the liabilities tied to owning nonconforming properties.

Furthermore, the discussions touched on the mortgage process, emphasizing that most buyers require financing to purchase real estate. Once a purchase agreement is executed, lenders typically require an appraisal. If a property is flagged as nonconforming during this appraisal, lenders may refuse to fund the sale until the zoning issues are resolved. This can lead to significant delays and complications for both buyers and sellers.

The implications of these discussions are profound, as they highlight the interconnectedness of zoning laws, property values, and the real estate market. As Crafton Borough continues to navigate these issues, the outcomes of such meetings will likely influence future real estate transactions and the overall economic landscape of the community. The Planning Commission's ongoing efforts to address zoning compliance will be crucial in maintaining property values and ensuring a stable housing market in the area.