Final answer:
The penalty for failing to deliver the Property Condition Disclosure Statement typically allows the buyer to terminate the agreement, with a full refund of any sums paid.
Step-by-step explanation:
The penalty for a seller who does not deliver the Property Condition Disclosure Statement can vary depending on the jurisdiction. In some areas, failure to provide this disclosure can result in the buyer having the right to terminate the agreement. According to the provided information, if the owner is unable to deliver possession of the residence due to loss, destruction, or any other reason, both the resident and owner have the right to immediately cancel and terminate the agreement. If the property condition disclosure is a part of this possession, and it is not provided, it could be seen as a failure to deliver possession. In such a case, the buyer (resident) may choose to cancel the agreement, leading to the refund of any sums paid under the agreement in full.