If you`re looking to purchase real estate in Utah, it`s important to understand the legal agreement you`ll need to sign: the Utah real estate purchase contract. This document outlines the terms and conditions of the sale, and serves as a binding agreement between the buyer and seller.
Here are some key things to know about the Utah real estate purchase contract:
1. Required elements: In Utah, the purchase contract must include certain elements to be legally binding. These include the names and addresses of both the buyer and seller, a description of the property being sold, the purchase price, and any contingencies (such as financing or inspections).
2. Earnest money: To show their commitment to the sale, the buyer typically puts down a deposit called earnest money. This is a percentage of the purchase price, and is held in escrow until the sale closes. If the buyer backs out of the sale without a valid reason (such as a contingency not being met), the earnest money may be forfeited to the seller.
3. Contingencies: As mentioned, the purchase contract may include contingencies that must be met before the sale can proceed. For example, if the buyer needs to obtain financing to complete the purchase, this would be a financing contingency. If the inspection reveals major issues with the property, the buyer may require repairs to be made as a contingency.
4. Closing costs: Both the buyer and seller will incur costs associated with the sale. These may include appraisal fees, title insurance, and transfer taxes. The contract should outline which party is responsible for each cost.
5. Closing date: The contract should include a specific date for closing on the sale. This is the date when the buyer takes possession of the property and the seller receives payment. It`s important for both parties to adhere to this date to avoid legal issues.
Overall, the Utah real estate purchase contract is a vital document that protects the interests of both the buyer and seller. If you`re considering purchasing real estate in Utah, be sure to review the contract carefully and consult with a real estate attorney if needed.