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Utah Real Estate Contract

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What is a Utah Real Estate Contract?

A Utah real estate contract is a legally binding agreement that is created when a buyer makes an offer on real estate that is for sale. If the seller accepts the buyer’s offer, the parties can agree to contract terms and then sign the real estate contract to make it legally binding. This stage of the real estate buying process is known as being “under contract”.

The purpose of a real estate contract is to establish terms and conditions surrounding the transaction to ensure that both party’s interests are protected. For this reason, real estate contracts must include specific information about the property and payment terms.

It is common to find the following terms included in a Utah real estate contract:

  • Purchase price. The agreed upon sale price that the buyer will pay the seller.
  • Earnest money deposit. A deposit made by the buyer to serve as collateral to the offer. If the buyer breaches the real estate contract by backing out without cause, they forfeit the deposit.
  • Appliances and fixtures. Any additional items included in the sale of the house which could include appliances, furniture, or certain fixtures.
  • Contingencies. Conditions that must be met before the sale is finalized. These are also called “buyer’s conditions of purchase”. In Utah, the three most common contingencies in a real estate contract are due diligence, appraisal, and financing.
  • Closing date and settlement. The date that all documents are signed, money is paid, and the title is transferred.
  • Possessions. The official date that the buyer takes possession of the property and can move in.

Common Utah Real Estate Contracts

In Utah, the Division of Real Estate has two popular contract templates that are approved by the Utah Real Estate Commission and the Utah Attorney General.

  1. Standard Purchase Agreement. The standard contract template used for buying and selling residential real estate. Only licensed real estate agents in Utah are permitted to use this form.
  2. Lease with Option to Purchase. A contract between a landlord and a tenant in which the tenant has the option to purchase the property they are renting at a later date for a previously agreed upon price.

4 Essential Elements of a Utah Real Estate Contract

All real estate contracts in Utah should contain these 4 essential contract elements:

  1. An offer and acceptance of the offer
  2. Consideration or the exchange of items of value
  3. At least two parties with the legal capacity to enter a contract
  4. A legal purpose that doesn’t violate any laws or public policy

If a real estate contract is missing any of these elements, a court could rule that the contract is void and unenforceable.

Is Utah a “Buyer Beware” State in Real Estate?

Yes. Utah is considered a "caveat emptor" state, which means "buyer beware”. This means that the buyer is responsible for conducting their own due diligence and inspections before purchasing a property, and the seller is not required to disclose certain information about the property's condition.

Under Utah law, there is one exception to this rule. The seller must disclose if the property has ever been contaminated due to the storage, manufacturing, or use or methamphetamine.

Can a Seller Back Out of a Real Estate Contract in Utah?

In Utah, a seller can back out of a real estate contract if the contract includes a contingency or escape clause that allows them to do so under certain conditions. For example, a common contingency in real estate contracts is a "home sale contingency," which allows the seller to back out of the contract if they are unable to sell their current home.

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Samuel R. on ContractsCounsel
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October 2, 2021

Samuel R.

Attorney
Free Consultation
Phoenix - Arizona
5 Yrs Experience
Licensed in AZ, PA, UT
Widener University Delaware Law School

My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the 2024 Super Lawyers Southwest Rising Stars list. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.

Tiffany O. on ContractsCounsel
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5.0 (4)
Member Since:
January 3, 2024

Tiffany O.

Attorney
Free Consultation
Washington, Utah
8 Yrs Experience
Licensed in NM, UT
J. Reuben Clark Law School

Tiffany received her Juris Doctorate from the J. Reuben Clark Law School, Magna Cum Laude. She is admitted to the Utah State Bar and the New Mexico State Bar. She practices in the areas of real estate, general business, business formation, employment agreements, and civil litigation.

Jared F. on ContractsCounsel
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4.8 (4)
Member Since:
March 4, 2024

Jared F.

Managing Attorney
Free Consultation
Salt Lake City, UT
20 Yrs Experience
Licensed in NV, UT
Harvard Law School

Jared Fields is an experienced business lawyer and litigator with experience in diverse industries and practice areas. Prior to launching his own practice, he served as the chief legal officer for a group of privately-owned companies, including a real estate development group, construction companies, multiple franchisees, and a professional soccer team. As a result, he is experienced in real estate transactions, commercial agreements of varying degrees of sophistication, employment matters, and litigation, as well as general business legal advice. He was also an in-house attorney for a renewable energy company, where he was responsible for litigation, investigations, enforcement actions, and related securities filing disclosures. Mr. Fields also spent many years as a litigator in private practice, representing clients in matters ranging from securities litigation, to breach of contract, to cases involving real estate and financial services. Mr. Fields has particular experience in legal matters that may involve complex financial, accounting, valuation, and other quantitative issues.

Simon C. on ContractsCounsel
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Member Since:
August 5, 2021

Simon C.

Corporate Attorney
Free Consultation
Utah
20 Yrs Experience
Licensed in UT
Brigham Young University Law School

Corporate counsel with years of in-house experience working with and reporting to board / executive-level and upper management, along with extensive regional / national law firm background in commercial transactions and contracts, complex commercial litigation, and employment matters. Skilled at executing corporate priorities, driving profitability by implementing goal-oriented processes to achieve revenue and productivity targets, and managing company litigation and outside counsel. Recognized for creating policies and practices to address ethical dilemmas and resolving misconduct.

Matt M. on ContractsCounsel
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Member Since:
August 16, 2022

Matt M.

Attorney
Free Consultation
Orem, Utah
17 Yrs Experience
Licensed in UT
Washington & Lee University

I love to learn, and I love solving problems. That's why I became a lawyer, and learned to solve legal problems for individuals and businesses and help them fix things when there's a snag. Touch base if you think I could have something to offer for you or your company. Experienced, results-oriented legal professional whose background and education have established him as a valuable resource in areas of corporate law, franchising, litigation, compliance, mortgages and banking, and more. Practice Areas Include: Corporate law, Franchising, Litigation, real estate, corporate law, civil disputes, insurance representation, corporate counseling, dispute resolution, risk management, regulatory counsel, compliance. Experience involves sophisticated as well as routine corporate structuring and transactions, simple and complex litigation, and written and oral advocacy such as depositions, mediated settlement conferences, trials, appeals, written pleadings and discovery, and case strategy and analysis. Experience managing and litigating disputes between parties and negotiating settlements across the spectrum of civil litigation, including probative discovery, successful motions practice, legal research and writing, appellate practice, and legal consultation to individuals and business entities. Further experience includes digesting and monitoring updates to the legal landscape to advise clients or departments and successfully adapt policies and procedures to assure compliance with applicable laws and regulations as well as to manage risk effectively. For those needing a skilled commercial or corporate lawyer, or for individuals whose rights need persuasive advocacy, I am a valuable resource. Representative work also has involved success on the appellate level, as in Baker Construction Company, Inc. v. City of Burlington and Hawthorne, LLC, North Carolina COA09-13.

Darren W. on ContractsCounsel
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Member Since:
November 5, 2023

Darren W.

Attorney
Free Consultation
South Jordan, Utah
20 Yrs Experience
Licensed in AZ, CO, UT, WY
J. Reuben Clark, BYU

My main focus is estate planning and business transactions, but I have had many practice areas throughout my career, including criminal defense and prosecution, civil litigation from neighborhood squabbles to corporate contentions. I have also worked in bankruptcy, family law, collections, employment law, and personal injury. I stand ready to assist in any area to which I feel I can be of service, but will not try to fake it if I do not know the area of law I am being asked to serve in.

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Real Estate

Real Estate Contract

Georgia

Asked on Mar 18, 2022

WHAT ARE YOUR FEES TO PERFORM QUIT CLAIM DEED COMPLETE BUTTS COUNTY GEORGIA 30233

SON AND EX

Meghan T.

Answered Mar 29, 2022

Hi. The cost for my practice to prepare a Quit Claim Deed is $99. The Cost for me to handle the closing is $250 plus recording fees. These costs apply for any county within the state of Georgia. Let me know if you have any more questions. Meghan K Thomas

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Real Estate

Real Estate Contract

Illinois

Asked on Mar 27, 2022

what is better to buy land or rent for construction in US?

we are a construction company from Ukraine, we are planning to build a cottage town in the USA

T. Phillip B.

Answered Apr 5, 2022

I suppose it doesn't matter if you have the lease giving you permission and the lease is long enough to justify the building expense when you won't own it. But I'd buy the land so you could eventually sell the property with the building on it.

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Real Estate

Real Estate Contract

Georgia

Asked on Mar 24, 2022

How many years does a quick claim become effective?s

Number of years for quick claim to be effect ive

Meghan T.

Answered Mar 29, 2022

A quit claim deed is effective upon execution so long as the deed is dated as of the date of signature. Execution means that the deed is signed, in front of a witness and a notary. The witness and notary must also sign the deed. Finally, the deed must be recorded. This means that the deed must be submitted to the Superior Court recording office of the County in which the property sits. Please let me know if you have any questions. Thanks, Meghan K Thomas

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Real Estate

Real Estate Contract

New York

Asked on Dec 26, 2021

Can you purchase or refinance under a land contract?

I’ve been living here for 2 years. Currently have been working with my credit union and they are having a terrible time trying to understand the legalities of my land contract first off, and secondly they just don’t seem to know what they are doing. It’s been over 8 months, 4 different loan officers and I’m once again waiting for someone else to help finish this thing out. It’s only $60,000 with a $120,000 appraisal. So, as of now I am stuck paying 2.5x monthly under this land contract than I was promised would be an easy mortgage process. So any guidance in the right direction would be very helpful. It’s a New York home. 20 yr fixed, no balloon, with a (brace yourself) 12% apr. HELP ME PLEASE! One month I’m being told to authorize a credit check for a first time homebuyer grant method of mortgaging this property. The next it’s authorizing it for a refinance. I do have earnest money deposits for over $3,000 and another $3000 paid towards principal under this land contract also.

Jane C.

Answered Jan 11, 2022

I suggest you speak with a New York real estate attorney. That attorney needs to review the documents related to the transaction.

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