Utah's real estate industry is preparing for one of its most significant contract updates in recent years. A revised version of the Utah Real Estate Purchase Contract has been approved by the Utah Real Estate Commission and is currently under review by the Attorney General's Office before becoming the standard statewide contract, potentially beginning January 1, 2027.
While many of the changes are designed to improve clarity and simplify the buying and selling process, they also introduce several new provisions that buyers, sellers, and real estate professionals should understand.
A Simpler, More Organized Contract
One of the most noticeable improvements is the organization of the purchase contract. Key financial terms, deadlines, financing details, and other important transaction information are now grouped together on the first page, making it easier for everyone involved to review the most critical terms at a glance.
Greater Transparency During Transactions
The proposed contract places a stronger emphasis on transparency by clearly identifying financing types, seller contributions toward closing costs, home warranties, and other negotiated terms directly within the agreement. These updates aim to reduce misunderstandings and make negotiations more straightforward for both parties.
Updated Rules for Earnest Money
One of the most discussed changes involves earnest money. Under the proposed contract, if a buyer cancels during the financing contingency period, a portion of the earnest money may automatically become non-refundable unless different terms are negotiated. The draft also includes new language regarding timely delivery and deposit of earnest money, emphasizing the importance of meeting contractual deadlines.
Modern Homes Receive Modern Protections
As smart home technology becomes more common, the new contract better defines what stays with the property after closing. Smart home systems, security devices, thermostats, video doorbells, and similar permanently installed equipment are more clearly identified as part of the home's included features unless specifically excluded in the contract. Electric vehicle charging equipment is also addressed.
Clearer HOA and Seller Disclosure Requirements
The draft expands disclosure requirements related to homeowners associations by requesting additional financial information and reserve studies when applicable. Sellers are also expected to disclose any known issues that could affect a property's insurability, providing buyers with more complete information before closing.
Possession After Closing
To reduce post-closing disputes, the proposed contract establishes clearer expectations for possession. Sellers who remain in the property beyond the agreed possession date could face daily holdover fees, and the contract further explains the legal process if possession is delayed.
Improved Communication and Deadlines
Several updates modernize how notices and accepted contracts are delivered. Electronic delivery is more clearly defined, and certain deadlines that fall on weekends or legal holidays would automatically move to the next business day, helping avoid unnecessary disputes.
Looking Ahead
Although the proposed purchase contract has received approval from the Utah Real Estate Commission, it remains under review before becoming the official statewide form. Additional revisions are still possible before implementation.
If adopted as expected, these changes will create a more transparent, organized, and consumer-friendly purchase contract while reflecting today's real estate practices and technology. Buyers, sellers, and real estate professionals should stay informed as the final version is released in the coming months.
