In the state of Utah, real estate transactions are initiated and facilitated by a legal document called a Real Estate Purchase Contract, more commonly referred to as a REPC (pronounced rep-see).
The REPC acts as a contractual offer to purchase on behalf of a buyer, and a contractual acceptance of the buyer’s offer (or potentially counteroffers) by the seller of a piece of real estate. The offer contained in a REPC normally includes a provision for earnest money (an amount offered by the potential buyer to show he has real intent in considering the purchase and executing the contract)
The standard Utah REPC has 25 sections, which I’ll describe here.
The Utah Real Estate Purchase Contract starts with verbiage that acts as an offer from the buyer to the seller, including the date of the offer, the amount being offered, a commitment to paying a designated amount of earnest money within four days of the offer being accepted, and the signature of someone representing the brokerage (or other buyer representative) verifying that an earnest money deposit has been received.
Utah REPC Section 1
This section identifies the property that is the subject of the REPC agreement. Normally the property’s given address is used to identify the specific property involved in the transaction.
This section is also used to identify items associated with the property that will be included with the sale as well as particular items that are excluded from the sale. This section of the Utah REPC creates a clear boundary for both buyer and seller regarding what items will be involved in the real estate transaction and what items will specifically be left out.
Also, because Utah is a desert, water rights are critical elements of property transactions. Section 1 of the Utah REPC includes a specific section dealing with water rights, allowing a seller to exclude water shares from the property transfer.
In section 2 of the Utah REPC, the purchase price is made clear. The purchase price is segmented into the different components of the total agreed upon price, including the earnest money deposit (which is normally applied to the final purchase price), the amount that will be financed via a mortgage, any seller financing amount, and the amount that will be provided by the buyer at closing to complete the funding of the entire purchase.
Section 3: Settlement and Closing
Section 3 describes the settlement and closing details, including who pays for obligations that might be owed on the property for HOA fees or other potential obligations associated with the property. It also provides for credits to the buyer that might come from things such as tenant rents or deposits.
Section 3 section also describes what constitutes closing and what conditions must exist for settlement and closing to take place.
Section 4: Possession
Section 5: Confirmation of Agency Disclosure
Section 6: Title and Insurance
Section 7: Seller Disclosures
Section 8: Buyer’s Condition of Purchase
Section 9: Addenda
Section 10: Home Warranty Plan / As-Is Condition of Property
Section 11: Final Pre-Settlement Walk-Through Inspection
Section 12: Changes During Transaction
Section 13: Authority of Signers
The official Utah REPC form (last updated in 2008) can be viewed and downloaded from the State of Utah website: https://realestate.utah.gov/forms/REPC_2008.pdf