When buying and selling real property in Utah, the standard form to use is called Real Estate Purchase Contract, a.k.a. the REPC (pronounced rep-see).
This is the form that licensed real estate agents must use. Buyers and sellers may use any form they choose, however if there is a real estate agent involved, then this is the form. This form is approved by the Utah Real Estate Commission and the Office of the Utah Attorney General, effective August 5, 2003. It replaces and supersedes all previously approved versions of this form. There will be a new one in the next year or so. When that happens I will talk about the changes and post a copy of the new one.
It is actually a very good document and covers most circumstances that could arise. It is a very win-win and allows a buyer and seller to enter into an agreement to sell-buy real property and allows the buyer to do their diligence with deadlines. It covers things like inspection, appraisal, loan and remedies for defaults.
Your three main issues are covered:
The inspection clause. You have the right to inspect the property, cancel the contract and get your earnest money back. No questions asked.
The appraisal clause. If the property appraises for less than the agreed purchase price you may cancel the contract and get your earnest money back.
Loan denial. Even though you have been pre-qualified or pre-approved, there is still the outside chance the loan can be denied. If you are denied you can cancel the contract and get your earnest money back.
All of these conditions have deadlines. As long as you complete the condition and make your claim in writing prior to the deadline, you are good to go. Go here to read about deadlines.
Look at a copy of the Real Estate Purchase ContractReal Estate Purchase Contract.
Everything must be in writing no matter how much you know or like someone or how nice they seem to be.
Remember Money Changes Everything
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