A Utah residential purchase agreement outlines the terms of a real estate sale between a seller and a buyer. This legally binding contract includes essential details, such as the purchase price, earnest money deposit, and closing date. It establishes the groundwork for a seamless transfer of property ownership.
The negotiation process begins when the buyer submits their initial offer, which includes specific conditions they deem necessary. Then, the seller has a defined period to respond, during which they can make adjustments to the terms through counteroffers. Once the parties reach a mutual agreement and sign the document, they solidify their agreement and commit to the transaction’s terms.
State Laws
- Buyer Beware: Utah is a buyer beware (“caveat emptor”) state, meaning that sellers don’t have to disclose the material condition of a property in most instances. However, the Utah Supreme Court has declared that sellers must disclose any material defects that an inspector can’t discover during a standard inspection [1] .
- Methamphetamine Exception: While disclosure of the property’s condition isn’t required in most cases, the seller must disclose if the property is contaminated due to the previous use, manufacturing, or storage of methamphetamine on the property [2] .
- Liability for Lack of Methamphetamine Disclosure: The real estate agent isn’t liable for the property owner’s failure to make a methamphetamine disclosure unless they’re also the owner [3] .
- Stigmatized Conditions: The seller doesn’t have to disclose that the home was the location of a decontaminated methamphetamine lab, a suicide, or a homicide. They also don’t have to disclose if someone with a disease like AIDS has lived there if the state’s Department of Health has determined that the disease can’t be transferred by living in a residence [4] .
Realtor Version
Real Estate Purchase Contract
This form from the Utah Real Estate Commission lets professional realtors create an official contract for the sale or purchase of residential property.
Required Seller Disclosures
Lead-Based Paint Disclosure
Sellers must include a lead disclosure statement and accompanying educational resources to explain the presence of lead and the exposure risks for homes built before 1978 (42 U.S. Code § 4852d).
Seller's Property Disclosure Statement
While this form isn't required for most home sales and purchases, sellers can still provide it to buyers to facilitate the selling process.
Buyer's Due Diligence Checklist
A buyer can use this checklist to ensure the property doesn't have any gross defects and the condition meets their standards.
Do Sellers in Utah Have to Disclose Property Defects?
In most cases, the seller does not have to disclose a property’s material defects. Instead, it abides by the “caveat emptor” or “buyer beware” principle, emphasizing that buyers are solely responsible for seeking inspections. This way, they can know if a property is up to their standards before agreeing to purchase it.
Please note that if a seller purposefully hides a defect or creates material misrepresentations constituting fraud, they may be responsible for reversing the transaction and paying associated damages.
