Note: This is part 2 of our articles on the Utah REPC 2027 updates. See the previous articles for more details.
The Contract’s Most Important Organizational Change
The biggest visible change in the 2027 REPC is the decision to move nearly all fillable and negotiable terms to the front of the contract. Page one now concentrates the information that changes from offer to offer: purchase price, sources of funds, seller contributions, home warranty, buyer conditions, deadlines, and possession.
The standard explanatory language still appears later in the REPC. Page one is not a substitute for reading the entire contract. Its advantage is comparison: clients can more easily see the economic terms and the conditions that apply to a particular offer.
A Clearer Approved-Form Notice
The introductory notice emphasizes that the REPC is legally binding and that Utah law normally requires licensees to use the state-approved form. It also explains that a licensee may instead use legal forms prepared by counsel for a buyer, seller, lessor, or lessee. The critical point is that the legal form must come from counsel for the client—not simply from counsel retained by a brokerage to replace the approved form for routine use.
The notice also reminds the parties to consult an attorney or tax advisor when they want legal or tax advice. Real estate licensees explain approved forms and transaction choices within their permitted scope; they do not become attorneys by gaining experience with contracts.
Price and Sources of Funds
The purchase-price breakdown is moved to a prominent position. The familiar categories of earnest money, new loan, seller financing, and other funds remain, but the new-loan section identifies common loan types with checkboxes, including conventional, FHA, VA, and USDA financing.
A loan-type checkbox does not replace an addendum that the form expressly requires. If FHA or VA terms depend on the approved FHA/VA Loan Addendum, the addendum must be included and signed. The same principle applies to other selections linked to a required addendum: checking a box is only one part of completing the offer correctly.
The form also gives examples of other funding sources, such as a home-equity line of credit, bridge loan, or hard-money loan. That disclosure gives a seller better information about the structure of the buyer’s offer. Agents should not assume, however, that every alternative source receives the same protection as the specific new loan addressed by the financing condition. Unusual financing may require carefully drafted additional language.
Brokerage Compensation Contribution
The seller’s proposed contribution toward the buyer’s brokerage compensation appears on page one. The form improves language that previously could be read as a percentage or a dollar amount. The 2027 version treats the stated percentage and stated dollar amount together, reducing an argument that a party may choose the lower of two alternatives.
Complete both blanks intentionally. If compensation is expressed only as a percentage, enter zero in the dollar field as appropriate; if it is a flat amount, address the percentage field. Later language on page three states that the seller’s contribution cannot exceed the amount owed under the buyer-broker agreement and that any excess is returned to the seller.
Seller Contribution to the Buyer’s Closing Costs
A separate closing-cost contribution field is built into the REPC. Under the prior form, this common negotiation often required an addendum. Separating it from brokerage compensation helps the parties understand that they are distinct terms.
Later contract language describes permitted uses, subject to lender requirements. These may include financing costs, prepaid escrow items, temporary or permanent interest-rate reductions, and other authorized expenses. An unused amount may be applied as permitted, including toward a purchase-price reduction. Agents should verify lender limits rather than promise that every negotiated dollar can be used in a particular way.
A Simplified Home-Warranty Choice
The home-warranty provision is streamlined. Instead of multiple choices about who selects and pays for the plan, page one asks whether a plan is included and states the maximum amount the seller will pay for a plan selected and ordered by the buyer. The revision reflects the way this term is commonly negotiated while eliminating repetitive selections.
Buyer Conditions of Purchase
Due diligence, appraisal, financing, and a purchase subject to sale of the buyer’s property are gathered into a single group of elections. That layout makes the buyer’s protections easier to review, but it also makes careful completion essential. A condition that is not selected may not protect the buyer.
The appraisal and financing conditions now have separate deadlines. Agents must calendar both dates and explain that a right to cancel under one condition is separate from a right under another.
Financing Cancellation and the 50 Percent Default
The financing condition contains one of the most consequential changes in the entire form. The parties may state the percentage of earnest money released to the seller if the buyer cancels in accordance with the financing condition. If the selection is omitted, the contract supplies a default of 50 percent.
Buyers and agents should not treat this as a routine blank. The amount should be negotiated deliberately and explained before the offer is signed. The provision may also reduce attempts to use a later financing deadline as a substitute for an expired due-diligence condition. When the reason for cancellation is disputed, agents should involve the principal broker and recommend legal counsel rather than giving a legal conclusion.
Subject to Sale, Deadlines, and Possession
A buyer relying on the sale of another property must identify that property’s address and attach the applicable subject-to-sale addendum. The contract says the condition does not apply if the required addendum is missing.
The major deadlines are grouped on page one, and the possession choices have been moved forward as well. This is a practical improvement: the parties should be able to find the due-diligence, appraisal, financing, settlement, and possession terms without searching through the entire form.
Page 1 Takeaway
Page one is easier to read, but clearer design does not eliminate drafting risk. Review every box, blank, deadline, contribution, and addendum reference with the client. The financing earnest-money percentage, in particular, should never be left to accident.
Official references: Utah State Approved Forms and Utah Code 61-2f.
Educational disclaimer: This general educational summary is not legal or tax advice. Consult the final approved form, the principal broker, and qualified legal or tax counsel as appropriate.