[UT] Can I cancel a Utah REPC contract under the financing clause if I buy another home?

Lexi, Chatbot

I understand that finding the right real estate lawyer is important for your needs. What specific real estate issue are you facing in Utah?

Lexi, Chatbot

Are you looking for assistance with a residential or commercial property matter?

Lexi, Chatbot

Is there anything else the real estate lawyer should know before I connect you? Rest assured they'll be able to help with cancelling the Utah REPC clause.

Andrew F., Esq.

Good day and welcome. Please give me a moment to review your question. Note that I am a hearing impaired expert and so phone calls are difficult for me. Thank you for understanding.

Just so you are aware, this is a legal information only site. I do not provide representation and no attorney-client relationship is formed. My answers and comments should not be considered legal advice. It is always best to hire a local attorney to review the specifics of your particular case to ensure that a proper review is conducted.

Please share your question my friend.

Andrew F., Esq.

Section 8.3(b)(iii) applies to cancellation based on due diligence findings — essentially allowing the buyer to withdraw if, during the Due Diligence Deadline period, they determine in their sole discretion that the property, title, disclosures, or any other investigation result is unsatisfactory.

The key legal requirement is timing and notice: you must give written notice of cancellation before the Due Diligence Deadline and do so in the manner required by the REPC (usually through the state-approved Cancellation/Release form delivered to the seller or seller's agent). If your notice is timely and properly delivered, your earnest money should be returned to you under the contract’s terms, and the seller cannot force you to move forward. If the due diligence period has already expired, however, cancellation becomes much more complicated and you may lose earnest money unless another contingency applies, such as financing under Section 8.2 or appraisal issues under 8.3(a).

So essentially, your obligations therefore depend on whether you act within the contractual window and follow the correct procedural steps. If you miss the deadline, the seller can legally claim the earnest money as liquidated damages unless the seller fails to perform or you have another valid contractual basis to terminate.

Andrew F., Esq.

If you are invoking 8.3(b)(III) under the financing condition, your right to cancel hinges on acting within the Financing Deadline and showing that the loan terms you qualify for are not acceptable to you in good faith. (UT Code § 70A-1a-304)

Utah contracts give buyers broad discretion here, but the duty of good faith still applies. As long as you properly document the inability to secure acceptable financing and give notice before the deadline, the seller cannot force performance even if you later buy a similar-priced property — the key risk arises only if the seller claims you acted in bad faith, so keep clear proof of the lender’s terms and your notice timing. (UT Code § 70A-1a-201(2)(t))