Note: This is part 6 of our articles on the Utah REPC 2027 updates. See the previous articles for more details.
A Shorter Financing Section
The financing condition is substantially shorter because the negotiable earnest-money selection has moved to page one. Page five now directs the parties back to the percentage chosen in the front-page financing terms.
If the buyer cancels in accordance with the financing condition, earnest money is released according to that selection. If the parties left the selection incomplete, the contract’s default may control. This is why the page-one percentage must be reviewed deliberately before the offer is signed. By default, 50% of the earnest money will be released to the seller, if the buyer cancels on the financing condition.
Use the Correct Cancellation Condition
The streamlined language reinforces the separation of due diligence, appraisal, and financing. A buyer should not assume that a financing deadline preserves every reason the buyer might want to cancel. The facts supporting the cancellation, the notice, the deadline, and the earnest-money consequence all matter.
When a buyer’s reason does not fit clearly within the selected condition, the agent should involve the principal broker and recommend legal advice. Attempting to convert a property-condition concern into a financing cancellation can create a dispute over default and earnest money.
The Property Remains in an As-Is Condition
The familiar as-is framework remains. The buyer relies on the elected due-diligence rights to investigate the property and decide whether to proceed, renegotiate, or cancel as the contract permits. The seller’s disclosure and maintenance obligations do not turn the REPC into a general warranty of every condition.
An Express Exception for Nail and Screw Holes
The seller is not responsible for repairing ordinary wall damage caused by removing items such as picture frames or decorations, including typical nail holes, screw holes, and similar attachment marks.
The clause resolves a recurring disagreement about what broom-clean or move-out condition requires. It is best read as an exception for normal attachment marks, not permission to leave large openings, unusual destruction, or damage unrelated to ordinary removal of decorations. If a particular wall treatment matters to the buyer, address it expressly before closing.
The Final Walkthrough
The final pre-settlement walkthrough remains the buyer’s opportunity to confirm that agreed repairs were completed, the property’s condition has not materially changed, included items remain, personal property and debris have been removed as required, and possession arrangements are on track.
The walkthrough is not a replacement for inspections or due diligence. It occurs late in the transaction and is designed primarily to confirm performance and condition, not to reopen every issue the buyer could have investigated earlier.
Walkthrough Obligations Survive Closing
The revised provision expressly survives closing. That addition helps prevent an argument that a matter properly raised during the final walkthrough disappears merely because the parties complete the closing process.
Survival does not guarantee a particular remedy or prove that every late complaint was valid. Agents should document the condition, the notice given, the parties’ communications, and any written agreement about post-closing performance. Significant disputes should be referred to the principal broker and legal counsel.
Page 5 Takeaway
Page five contains fewer words but important consequences. The financing selection on page one now carries more of the work; ordinary picture-hanging marks are excluded from the seller’s repair responsibility; and properly arising final-walkthrough obligations do not automatically vanish at closing.
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.