Section 907 - Implied covenants of the seller(a) Any seller entering into an installment land contract shall impliedly covenant that: (1) Subject to subsection (f) hereof, his title shall be good and marketable during the entire term of the contract, and(2) Upon the purchaser's written request at reasonable intervals, no oftener than once every six months, he shall (i) inform the purchaser in writing of the current unpaid balance of the purchase price, (ii) furnish the purchaser with a complete itemization of all components of all installment payments, and (iii) make available to the purchaser for his inspection all tax and insurance receipts for the premises and whenever the purchaser is responsible under the contract for repairs, all bills and receipts therefor. Seller shall not require purchaser to make settlement until the principal balance has been reduced by payments on account thereof to a sum not more than seventy-five percent of the original principal set forth in the installment land contract, except if seller agrees to take purchaser's purchase money mortgage for the full balance of the principal then due or secures a mortgage for the full balance of the principal then due from a third party, said mortgage to be payable within a term of not less than ten years.
(b) When any seller fails to perform any of the covenants set forth in subsection (a) hereof, the purchaser may:(1) Terminate the contract, or(2) So long as the seller's default continues, remain in possession under the contract and tender to the seller each installment payment provided for by the contract, less that portion which is allocable to principal, when any seller refuses or neglects to disclose information pursuant to subsection (a), clause (2) hereof, the purchaser in making his tender may withhold from each installment payment, that portion which he in good faith estimates as allocable to principal, and when the seller's default has been remedied the purchaser shall pay to the seller all sums withheld under this clause.(c) A purchaser electing either of the remedies set forth in subsection (b) hereof, shall serve a written notice of his election upon the seller personally or by registered mail or other mail service, which results in the post office department making a record of delivery and the sender receiving a receipt signed by the addressee or his agent, evidencing delivery sent to his last known address and shall with reasonable particularity state the reason for his action and the remedy he has elected. The notice shall state that on a specified day, not less than sixty days after service of the notice, the contract shall terminate or that the purchaser shall commence withholding principal payments whichever is the case, unless prior thereto, the seller shall cure his default and advise the purchaser thereof in writing, delivered personally to the purchaser or by registered mail, sent to the last known address of the purchaser.(d) Any purchaser not in default who has exercised his right to terminate the contract pursuant to subsections (b) and (c) hereof, and who has surrendered possession of the premises, may maintain an action to recover payments of principal made on the contract and assessment for public improvements paid by him without interest on any payments and other damages as the purchaser may have suffered.(e) When the purchaser exercises the option set forth in subsection (b), clause (2) hereof, and continues to tender each installment payment pursuant thereto, this shall be deemed to be full performance under the contract until the time that default is cured. Unless the default is cured the seller shall have no right to terminate the contract or to maintain an action for the balance of any installment payment.(f) For the purpose of this section, a title shall be deemed marketable even though there is a lien or encumbrance affecting it which can be extinguished by the payment of a definitely ascertainable sum not in excess of the unpaid balance of the purchase price.(g) When any seller violates subsection (a) hereof, and the seller does not comply with subsection (a) hereof, within thirty days after written demand therefor by the purchaser, the purchaser may at any time thereafter terminate the contract on account of uncertainty and may recover from the seller all installment payments paid, less that portion allocable to taxes, water and sewer rent and insurance premiums and less the cost of repairs made by the seller if the purchaser is responsible under the contract for repairs.1965, June 8, P.L. 115, No. 81, § 7.