Note: This is part 4 of our articles on the Utah REPC 2027 updates. See the previous articles for more details.
Page Three Explains the Numbers Entered Earlier
Page three contains more standard contract language and fewer fillable blanks. Its job is to explain several economic terms entered on page one and define what happens at settlement, closing, and possession.
Seller Contribution Toward Buyer-Broker Compensation
If the seller’s compensation contribution exceeds the amount due under the written buyer-broker agreement, the excess is returned to the seller. The provision answers a question that became increasingly important after compensation was added to the REPC: the contract does not allow an excess contribution to become an unintended payment to the buyer or buyer’s brokerage.
Agents should still enter the correct amount. The refund language is a safeguard, not a reason to draft carelessly or avoid explaining the negotiated contribution to both parties.
How the Closing-Cost Contribution May Be Used
The separate seller contribution toward the buyer’s closing costs may be used, subject to lender rules, for permitted expenses. The contract identifies uses such as a permanent or temporary mortgage interest-rate reduction, financing costs, closing costs, and prepaid escrow funds.
If part of the contribution remains unused, the buyer may direct it toward other lender-permitted costs or expenses, including a reduction in the purchase price. This differs from an excess brokerage-compensation contribution, which returns to the seller.
Rental Deposits, Prepaid Rent, and Utility Fees
The rental provisions clarify that deposits and prepaid rents may be transferred or credited from the seller to the buyer at settlement. The utility provision makes the buyer responsible for utility transfer fees. These are modest wording changes, but they reduce questions about how the obligations are handled on the settlement statement.
Seller Personal Service Agreements
A new section states that the buyer is not obligated to assume the seller’s personal service agreements. Examples include property-management, short-term-rental management, security-system, pest-control, and landscaping contracts.
The seller remains responsible for terminating, satisfying, or paying obligations under those agreements. Fees earned before closing under property-management or short-term-rental management agreements remain payable by the seller in accordance with those contracts.
This clarification is particularly useful when the property has been used as a rental. A service provider’s contract with the seller does not automatically become the buyer’s contract merely because ownership changes. Sellers should treat cancellation of these services as a closing task rather than leaving it for the buyer to untangle.
Settlement and Closing
The basic definitions and procedures for settlement and closing remain substantially familiar. Although section numbers may change, agents should continue to distinguish settlement—the execution and delivery of required documents and funds—from closing, which includes the recording and funding events defined by the contract.
Possession and the Holdover Seller
The possession provision now supplies a specific response when the seller fails to deliver possession on time. The seller becomes a tenant at will, and the buyer may serve the written notice necessary to begin an unlawful-detainer or eviction proceeding.
The seller also owes a holdover fee of $300 per day or the greater amount written in the contract. The REPC calls the fee liquidated damages rather than rent and states that it does not create a tenancy. The language is also intended to establish a damages figure that may be relevant if statutory enhanced damages are pursued.
The presence of a contract amount does not guarantee how a court will decide a contested damages claim. Agents should explain the contractual language but refer questions about eviction, unlawful detainer, treble damages, or enforcement to attorneys.
Keys and Keyless-Entry Codes
The seller must provide a duplicate master key and any applicable keyless-lock code. This simple addition recognizes that possession is incomplete if the buyer receives the house but not the practical means to secure and enter it. For smart locks, the parties should also transfer administrator control and remove the seller’s digital access.
Page 3 Takeaway
Page three distinguishes three outcomes that agents should remember: excess brokerage compensation returns to the seller; an unused closing-cost contribution may be used as the contract and lender permit, including a price reduction; and a seller who fails to surrender possession faces a defined daily holdover fee.
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.