Utah

Utah is an attractive place to live in because of a number of reasons — the presence of top rated academic institutions and a good business climate that accommodates businesses in the fields of technology, pharmaceutical and biomedicine, among many others. It is considered as the 5th fastest growing and the 6th most urbanized state. It is no wonder, therefore, that Utah’s real estate market continues to grow. Salt Lake County is the state’s biggest real estate market.

Home prices in Utah have been steadily going up in recent years due to a favorable economic growth. A home that is well maintained can sell in less than a month. But although Utah’s real estate values have appreciated, the state’s housing market remains affordable compared to its neighbors.

The agreement

As in any financial transaction involving the sale of a residential property, a purchase agreement is of utmost importance. The document binds the seller and the buyer and specifies the vital details of the transaction such as the purchase price, the amount of deposit required, the time limit in obtaining a loan, the allowable time for occupancy, financing contingencies, pest and home inspections, title issues, the closing costs and who will be responsible for paying them — whether the buyer, the seller or equally split by both parties. In most cases, the purchase agreement also serves as the sales contract.

The contract should also be accompanied by a property disclosure form which is normally a standard document in every state. The form stipulates information on the condition of the home being sold, its age, its defective parts, the repairs done and the presence of environmental hazards, if any.

A counter offer form or counter proposal may be needed if the seller would not agree to the price and terms being offered by the potential buyer. This form will usually negotiate for a new or higher purchase price and deposit and may include other conditions as well such as giving more time to vacate the house, excluding some items from the sale, providing a clause that your lawyer approve the contract and providing less time for the buyer to remove contingencies.

If the seller requires a down payment, an escrow agreement is called for. In the sale of a residential property, the escrow refers to the deposit or sometimes called earnest money. The lawyer of the seller normally becomes the escrow agent as he keeps the down payment in a special bank account until the contract has been performed. If the purchase pushes through, the money will be released to the seller at the closing.

Closing fees

The closing is normally the last phase of the selling process. It is during this time that the money for the real estate is paid for and the ownership of the title is transferred from the seller to the buyer. As for the closing costs, both parties may decide who will be responsible for paying them. In most cases, the seller offers to pay the fees as an incentive for the buyer. This provision should be stated in the purchase agreement or contract.

In Utah, the closing fees may include the survey, title insurance, recorded release of mortgage, transfer taxes, attorney’s fees and home inspections.