Utah Homebuyers Should Pay Close Attention to Property Disclosures

Utah homebuyers have important protections when reviewing a property before completing a purchase, including access to seller disclosures and the opportunity to conduct due diligence on the condition of the home.

Utah’s current Real Estate Purchase Contract requires sellers to provide a written Seller Property Condition Disclosure as part of the seller-disclosure package. Buyers can also investigate the property’s physical condition, including its roof, walls and foundation, as part of their due diligence.

What This Means for Utah Homebuyers

Buying a home is a significant financial decision, particularly when a property is older or has undergone previous repairs.

Buyers should carefully review available information about:

• Foundation and structural conditions
• Roof repairs and previous damage
• Water intrusion or drainage problems
• Plumbing and electrical systems
• Heating and cooling systems
• Environmental or geologic conditions
• Building-code issues
• Previous repairs and renovations
• HOA restrictions and documents

The Utah purchase contract specifically identifies the property’s foundation and other major systems as matters that buyers may investigate during due diligence.

Seller Disclosures Remain Important

Utah’s standard purchase contract requires sellers to provide a written property-condition disclosure before the applicable seller-disclosure deadline.

The disclosure package can also include information relating to environmental problems and building or zoning-code violations known to the seller.

This makes the disclosure process an important part of a buyer’s decision-making process.

However, buyers should not rely exclusively on the seller’s disclosure.

A disclosure is not a substitute for an independent home inspection and appropriate due diligence.

What About “As Is” Properties?

The phrase “as is” should not be treated as a reason for a buyer to skip due diligence.

The Utah Real Estate Purchase Contract gives buyers the opportunity to investigate the property’s condition and, when the applicable due-diligence condition is included, to cancel the contract or resolve objections based on the results of that investigation within the contractual deadline.

Buyers should therefore understand exactly what their purchase contract says before signing it.

If a buyer is uncertain about the legal effect of an “as is” provision or another contractual term, consulting a Utah-licensed real-estate attorney is appropriate.

Real-World Example: Foundation Problems

Consider a buyer purchasing an older home in Salt Lake County.

During the inspection, the buyer discovers evidence of previous foundation repairs and possible water intrusion.

Rather than relying solely on the seller’s disclosure, the buyer can investigate the issue further through appropriate professionals and review available documentation.

Depending on the terms and deadlines in the purchase contract, the buyer may be able to request repairs or other concessions, negotiate changes with the seller, or exercise available cancellation rights.

The Utah purchase contract specifically identifies the foundation as one of the conditions a buyer may evaluate during due diligence.

Real-Estate Professionals Also Have Disclosure Responsibilities

Utah’s Division of Real Estate emphasizes the importance of disclosing known material facts.

Its guidance gives examples such as an agent disclosing known defects including a leaky roof or foundation issues.

Real-estate professionals should therefore take disclosure obligations seriously and ensure that known material information is appropriately communicated to their clients.

What Buyers Should Do Before Closing

Utah homebuyers can protect themselves by taking several practical steps:

1. Review the seller’s disclosure

Read the entire property-condition disclosure and ask questions about anything unclear.

2. Conduct an independent inspection

A qualified home inspector can identify potential problems that may not be obvious during a showing.

3. Investigate major concerns

For significant foundation, structural, geological, environmental or other specialized issues, consider obtaining an evaluation from an appropriately qualified professional.

4. Review available documents

Buyers should review relevant repair records, permits, HOA documents and other information available for the property.

5. Understand the contract deadlines

Due-diligence and disclosure deadlines are important. Missing a contractual deadline can affect a buyer’s available options. The Utah purchase contract establishes specific deadlines and procedures for exercising due-diligence rights.

6. Seek legal advice when necessary

If a buyer believes important information was intentionally withheld or is unsure about contractual rights, a Utah-licensed attorney can provide advice specific to the situation.

What This Means for Sellers

Sellers should carefully complete their property-condition disclosures and provide accurate information about known conditions.

They should avoid assuming that an “as is” provision eliminates every potential disclosure obligation.

Sellers should also keep documentation concerning significant repairs, renovations and other material property conditions.

Final Takeaway

Utah homebuyers already have important tools for evaluating a property’s condition, including seller disclosures and contractual due-diligence rights.

The current Utah Real Estate Purchase Contract specifically requires seller property-condition disclosures and allows buyers to investigate important aspects of a property, including its foundation and other major systems.

The safest approach for buyers is to treat the seller disclosure as a starting point—not the end of the investigation.

A thorough inspection, careful review of documents and professional advice when necessary can help buyers identify potential problems before completing a major real-estate transaction.