How to Submit an Offer on a Home in Utah: The REPC Explained

What the REPC Is

The Real Estate Purchase Contract (REPC) is a standardized form used by the Utah Association of Realtors (UAR) for virtually all residential real estate purchase transactions in Utah. It is the document that transforms an informal offer ("I would like to buy your home for $500,000") into a binding legal contract.

The REPC is a dense legal document, typically 5 to 10 pages depending on how many addenda are attached. It is written in technical real estate language and uses standardized UAR checkboxes, blanks, and terminology. Your buyer's agent will help you fill it out, but it is important that you understand what you are signing.

Why Understanding the REPC Matters Before You Sign

Many buyers simply sign whatever their agent puts in front of them, trusting the agent to fill in the terms correctly. While agents are generally competent, errors can happen. More importantly, you need to understand your own obligations and protections.

Once the REPC is signed by both you and the seller, you have a binding legal contract. The deadlines in the REPC are not suggestions. If you miss an inspection deadline, you may lose the right to inspect the home. If you miss a financing contingency deadline, you may lose the right to cancel if your lender denies the loan. If you miss the settlement deadline, you may be in breach of contract. Understanding these deadlines upfront means you can plan accordingly and avoid expensive mistakes.

Anatomy of the REPC: Key Sections Explained

Here is a section-by-section breakdown of the REPC:

Property Identification and Purchase Price

The REPC begins with basic information: the property address, the purchase price, and a description of what is included in the sale. This section should be precise. The address must be correct, the price must be exactly what you are offering, and the property description should match what you are actually buying (sometimes just a house and lot, sometimes with furniture or other items).

Buyer and Seller Information

Names of all parties involved in the transaction. If you are married and taking title as joint tenants or tenants in common, both spouses should be listed. If you are buying in a business entity name, that entity should be clearly identified.

Earnest Money

The amount of earnest money you are providing and how it will be delivered (check, wire transfer, etc.). Earnest money is a good faith deposit that shows you are serious about the purchase. It typically ranges from 1 to 5 percent of the purchase price. Once delivered to a title company or escrow agent, earnest money is held in a trust account. If you perform under the contract and close, the earnest money is credited toward your down payment or closing costs. If you breach the contract, the earnest money may be forfeited to the seller. If the seller breaches, the earnest money is returned to you.

Financing Terms

The REPC specifies the type of loan you are obtaining (FHA, conventional, VA, USDA, or cash), the loan amount, the down payment, the estimated interest rate range, and the loan term (15 or 30 years, typically). These terms do not lock in your final financing, but they establish the parameters your lender must work within.

Due Diligence Period (Inspection Period)

This is typically 10 to 14 days from the date of contract acceptance. During this period, you have the right to hire a home inspector, conduct inspections, and request repairs or a credit for problems found. The due diligence period is your window to back out of the contract for any reason (or for inspection findings) without losing earnest money, as long as you cancel within the specified deadline.

Appraisal and Property Condition Contingency

This section establishes the deadline for the appraisal and allows you to cancel if the appraisal comes in below the purchase price. It also may allow you to cancel if the property is damaged by casualty (fire, windstorm, etc.) before closing.

Inspection Addendum and Right to Cancel

If you are conducting a professional home inspection, the REPC includes provisions for how long you have to do the inspection and what happens if problems are found. Typically, you have 10 to 14 days (the due diligence period) to conduct the inspection. If you find problems and the seller will not make repairs or provide a credit, you can cancel the contract and receive your earnest money back.

Financing Contingency

This contingency protects you if your lender denies your loan application. The deadline for this contingency is typically 20 to 30 days from the date of contract. If your loan is denied by this deadline, you can cancel the contract and your earnest money is returned.

Seller Concessions

If the seller has agreed to pay any of your closing costs or buyer's agent commission, that is specified here. Common concessions include the seller paying buyer's agent commission or contributing toward closing costs (typically up to 3 to 5 percent of the purchase price).

Settlement Deadline (Closing Date)

The date by which the sale must close. This is typically 30 to 45 days from contract acceptance. This is a critical deadline. If you cannot close by this date, you are in breach of contract and could lose earnest money or face other legal consequences.

Possession Date

Usually the settlement deadline, but can be different. This specifies when you get the keys and can move into the home. Some sellers request to stay in the home a few days after closing (called a post-closing occupancy agreement), which would be specified here.

Inclusions and Exclusions

What chattels (personal property like appliances, light fixtures, garage door opener, etc.) are included in the sale. Some items, like refrigerators and washer/dryer, should be explicitly included if the buyer expects them. Some items, like chandeliers or attached art, should be explicitly excluded if the seller wants to keep them.

HOA Disclosures and Addendum

If the property is in a homeowners association, the seller must provide disclosure documents. An HOA addendum section specifies deadlines for you to review HOA documents, the amount of HOA fees, and whether there are any pending special assessments.

Title and Closing

Specifies that the seller will provide clear title at closing and that a title company will handle closing. Any title issues must be resolved before closing.

Additional Terms and Addenda

If there are special circumstances, various addenda can be attached. Common addenda include an Addendum for Property Subject to HOA, Addendum to REPC for FHA Financing, Addendum for Short Sale, Lead Paint Disclosure (for homes built before 1978), etc.

The Three Critical Deadlines in Every REPC

While the REPC contains numerous deadlines, three are particularly important to understand and not miss:

Due Diligence Deadline (Inspection Period)

Typically 10 to 14 days after contract acceptance. This is your window to conduct home inspection, request repairs, or cancel without losing earnest money for any reason. Once this deadline passes and you have not exercised your right to cancel, you cannot back out of the deal without cause (and without losing earnest money).

Financing Contingency Deadline

Typically 20 to 30 days after contract acceptance. This is the deadline by which your lender must have a clear path to approve your loan. If your lender denies the loan by this deadline, you can cancel and get earnest money back. If you miss this deadline and then your lender denies the loan, you may not be able to cancel and could lose earnest money or be sued for breach of contract.

Settlement Deadline (Closing Date)

Typically 30 to 45 days after contract acceptance. This is the date you must close the sale. If you cannot close by this date and you are not in the process of clearing contingencies, you are in breach of contract.

Earnest Money: What It Is and How It Works

Earnest money is a fundamental concept that deserves its own explanation.

Purpose

Earnest money demonstrates to the seller that you are a serious buyer. It is a monetary commitment that you are willing to make to show good faith. Without earnest money, the seller might worry that you could walk away at any moment.

How Much?

The amount varies by market and purchase price. In Northern Utah's competitive market, earnest money is typically 1 to 5 percent of the purchase price. On a $500,000 home, earnest money might be $5,000 to $25,000. Your agent can advise on a competitive amount.

Who Holds It?

Earnest money is delivered to and held in escrow by a neutral third party, typically the title company or a real estate brokerage trust account. It is not held by the seller, the buyer, or the agents.

When Does It Get Used?

If you successfully close the transaction, earnest money is credited toward your down payment or closing costs. If the deal falls apart because the seller breaches (does not close, does not make promised repairs, etc.), earnest money is returned to you. If you breach (waive contingencies then change your mind), earnest money is typically forfeited to the seller.

What Contingencies Protect It?

As long as you are within the due diligence or financing contingency periods, you can typically cancel the contract and get earnest money back without forfeiting it. Once you have passed those deadlines and have not exercised your right to cancel, earnest money becomes at risk if you later change your mind.

Offer Strategies in Competitive Northern Utah Markets

Northern Utah's real estate market is often competitive. Multiple offers on the same property are common. Here are strategies to make your offer more attractive to sellers:

Offering at or Above List Price

In competitive markets, homes listed at market value often receive multiple offers at or above asking price. If you want to be competitive, expect to offer at least the list price, possibly more if there are other offers.

Escalation Clauses

An escalation clause automatically increases your offer price if another offer is higher, up to a maximum amount you specify. For example: "Our offer of $500,000 is escalated to $5,000 above any competing offer, up to a maximum of $510,000." This shows the seller you are committed and willing to compete without overcommitting to a specific number.

Shortening Contingency Periods

Offering shorter contingency periods (8 days to inspect instead of 14) shows you are organized and confident. However, do not shorten deadlines so much that you cannot realistically meet them.

Increasing Earnest Money

Offering more earnest money demonstrates commitment and reduces seller risk. If earnest money is typically 3 percent, offering 5 percent shows serious intent.

Flexibility on Possession

If the seller needs extra time before possession or wants a post-closing occupancy period, being flexible on this can make your offer more attractive.

Limited Inspection Requests

Offering not to request repairs unless something is structurally significant or a safety issue can appeal to sellers. Alternatively, committing to a credit for repairs instead of requesting repairs can streamline negotiations.

No Seller Concessions

Offering not to ask for seller concessions or closing cost help reduces the seller's financial burden and can make your offer more appealing.

What Happens After You Submit an Offer

Once you and your agent prepare the REPC, your agent submits it to the listing agent, typically by email, fax, or a digital document portal.

Seller Review

The seller (with or without a real estate agent) reviews your offer. They have a window of time (often 24 to 48 hours, but sometimes longer) to respond. They can accept, reject, or counter your offer.

Acceptance

If the seller accepts your offer with no changes, the REPC is signed by both parties and you are under contract. Your agent will give you a fully executed copy of the contract, and the earnest money delivery process begins.

Counteroffers

If the seller makes changes to any term (price, earnest money, deadlines, etc.), they are making a counteroffer. You then have a window (often 24 hours) to accept the counteroffer, reject it, or make your own counter. This back-and-forth can continue until both parties agree or one party walks away.

Understanding Counter Offers and Negotiation

A counteroffer is a REPC with one or more terms changed. For example, if you offer $500,000 and the seller counters at $515,000, they are changing one term but leaving everything else as you offered.

How Counters Work

When you receive a counteroffer, you have limited time (typically 24 hours, specified in the counteroffer) to respond. You can accept it, reject it, or make your own counter. Once either party rejects a counteroffer without responding, that counteroffer is dead and cannot be revived unless both parties agree.

Multiple Rounds of Negotiation

Negotiations can go several rounds. You counter at $510,000, seller counters at $512,000, you accept at $512,000. This is normal and expected in competitive markets.

When to Stop Negotiating

There is a psychological point at which further negotiation becomes unlikely to succeed. If you have made your best offer and the seller is holding firm, continuing to counter may only frustrate the seller and damage the relationship. Your agent will advise on when to accept the seller's terms or walk away.

Multiple Offer Situations

If there are multiple offers, the seller may send a "highest and best" request, asking all buyers to submit their absolute best offer with no further negotiation expected. In this scenario, you should submit the absolute maximum you are willing to pay and accept that the seller may choose another buyer.

Once You Are Under Contract

Once the REPC is fully signed by both parties, you are under contract. At this point, your obligations begin. You must:

• Deliver earnest money within the specified timeframe (typically 1 to 3 days)
• Conduct your due diligence (inspection, appraisal coordination) within the deadlines
• Obtain financing within the financing contingency deadline
• Close the transaction by the settlement deadline

The property is also considered sold, and the seller cannot accept another offer. The home is off the market until you close or the contract is terminated.

Key Warnings About REPC Terms

Never Waive Contingencies Lightly

Some agents or sellers may push you to waive the inspection contingency or the appraisal contingency to make your offer more competitive. Think very carefully before doing this. If you waive the inspection contingency and later discover expensive problems, you are obligated to buy the home as-is. If you waive the appraisal contingency and the appraisal comes in low, you must either pay the difference out of pocket or breach the contract and lose earnest money.

Know Your Deadlines

Calendar every deadline in the REPC and set reminders. Do not rely on memory or expecting someone else to remind you. These deadlines are binding, and missing them can have serious consequences.

Understand Every Addendum

If addenda are attached to the REPC (FHA addendum, HOA addendum, etc.), read and understand them. Addenda often include additional contingencies or requirements that are critical to your purchase.

Moving Forward with Your Offer

Before you submit an offer, review the REPC carefully with your agent. Ask questions about any terms you do not understand. Be clear on what you are committing to financially and legally. Make sure all deadlines are realistic given your situation and your lender's timeline. A well-crafted offer that reflects your true intentions and timeline sets you up for a smooth closing.