Buyer's Under-Contract Transaction Process


Buying a home can be a whirlwind!
We work hard to make the process easy, smooth and successful.

We often receive questions from out-of-state and international buyers who want to understand how the offer and sales process works here in Utah. As your Buyer's Agent, we work for you and will guide you through the process carefully. Below is a brief overview of what to expect:

Before we can write an offer for you, or even show you property, we are required to have a signed Buyer Representation Agreement. If you are not familiar with these new real estate industry rules, you can read more here.

We prepare your offer on a state-approved form, the "Real Estate Purchase Contract," commonly called the "REPC." Along with your offer, we are also required to complete and sign a "Buyer's Due Diligence Checklist." We draft the REPC based on your instructions after discussing the various options. Once everything is ready, we'll send the forms to you via DocuSign for easy digital signatures. Then, we submit the offer to the seller through the seller's agent.

After negotiations, once your offer is accepted by the Seller (or once you accept the Seller's counteroffer), you are officially “Under Contract” (In Escrow). Once under contract, you must deliver your Earnest Money Deposit within 4 calendar days, usually by wire. Earnest Money is held in our Summit Sotheby's brokerage trust account or at a title company. As the Buyer, you will typically have a Due Diligence period of about 2 weeks. If you cancel the contract during your Due Diligence period, you get your full earnest money back. You can cancel for any reason or no reason at all—it's pretty simple—but written cancellation must be submitted before the Due Diligence period ends. If you cancel after the Due Diligence deadline, the Seller may keep your Earnest Money deposit, so we monitor this date closely.

Although under contract for sale, we still have much work to do to ensure a successful closing. Many of these steps will have strict deadlines, and if not completed properly and on time, could result in the forfeiture of your earnest money and the loss of the sale. Below is an outline of the steps to expect. Remember, we will be your guide throughout the entire process. It's our job to keep you updated, informed, protect your earnest money, and make the process as easy and smooth as possible.

Remember, if you hire us as your Buyer's Agent, we represent you. We are here to work for you and look out for your best interests, so when we communicate with you, please respond promptly.  


Acceptance

This is the date when the seller or the buyer accepts the offer, or the last counteroffer, thereby placing the property under contract. Many dates throughout the transaction process may be based on the "Acceptance Date."

Buyer to Deliver Earnest Money Deposit

You, as the Buyer, may submit Earnest Money with your offer, but more commonly, the Earnest Money will be due within "4 calendar days upon acceptance," as outlined in the Real Estate Purchase Contract (REPC). The Earnest Money is usually wired and deposited with the Buyer's real estate brokerage and held in a real estate trust account until closing.

Receive the Seller's Disclosures

This is the process in which the Seller is required to provide you, the Buyer, with information about the property. The Seller will supply the following details. This is usually completed within 1 week of the Contract Acceptance Date.

  • Seller's Property Condition Disclosure - completed, signed, and dated by Seller.
  • Commitment for a Title Insurance policy, showing any easements, encroachments, and liens.
  • HOA information, budget, minutes, assessments, CC&Rs, and plat. Water rights, if applicable.
  • Copy of any leases, rental agreements, and property management documents affecting the property that do not expire before closing.
  • Notice of any claims or conditions related to environmental issues and building or zoning code violations.
  • Inventory of included personal property, if any.

Schedule Your Home Inspection

During your due diligence period, we will help you schedule a home inspection. We typically do not attend the entire inspection, but we often meet the inspector at the end to discuss any major concerns and view them together. Afterwards, we receive a detailed inspection report with photos of the concerns and issues. This is usually completed within 1 week of the Contract Acceptance Date.

Your Buyer's Due Diligence

Commonly called the Evaluations and Inspections, this is the period given to you as the Buyer to learn about, review, and inspect the property and determine if its condition is acceptable. This is typically completed within 2-3 weeks from the Contract Acceptance Date.

  • Carefully review all items listed in the Seller's Disclosures.
  • Schedule any necessary inspections, tests, and evaluations related to the physical condition.
  • Confirm the allowance of nightly rentals if important. 
  • Review the costs, terms, and availability of homeowner's insurance for the property.

Your Right to Cancel or Resolve Objections

This must be completed within your Buyer Due Diligence time period! (If you want to get your Earnest Money back.) If you determine from your Evaluations and Inspections that the physical, title, or legal conditions of the property are unacceptable, you may:

  • No later than the Due Diligence Deadline, cancel the contract by written notice to Seller.
  • Or no later than the Due Diligence Deadline, resolve in writing any objections.

Financing, Appraisal, and Any Remaining Contingencies

In the final steps of the transaction, we will coordinate and finalize any remaining details. This is the last date you can cancel the contract based solely on financing or appraisal issues and still receive your earnest money back. Usually, this process is completed within 4 weeks from the Contract Acceptance Date.

  • Is the sale and/or mortgage contingent upon an appraisal?
  • At what amount was the property appraised?
  • How is your financing going? Is the new loan fully approved and ready to pull docs?
  • Are there any last-minute issues for securing your mortgage?
  • Is the sale contingent upon you selling your previous home? How is that sale going?
  • Schedule a final pre-settlement walk-through inspection.

Utilities

At this stage, if everything looks good and we are on track for closing, it's time to transfer the utilities to your name. The Title Company usually handles water, sewer, and trash transfers, but you'll need to set up electric, gas, cable/satellite, and internet (unless these are provided by the HOA). We have contact information for all utility companies on our Utilities Page. Usually, this process can be completed a couple of days before the Settlement Date.

Settlement

You can complete your side of the Settlement from your home state or overseas. The documents can be delivered to you via FedEx, email, or DocuSign, or we can often arrange a mobile notary. You will need to deliver original notarized copies (if using financing), or if this is a cash sale, DocuSign is typically sufficient. We assist in coordinating these details with the Title Company handling the transaction. In Utah, all closings are conducted by title companies.

Settlement only occurs when all of the following happen:

  • Buyer and Seller sign all documents required by REPC, Title, Lender, etc.
  • Any monies required to be paid by Buyer and/or Seller have been delivered. 

Closing

Once both sides complete their obligations by the Settlement Deadline, "Closing" can occur. Depending on the day and time of Settlement, the subsequent steps can be completed the same day, or possibly take a few days, especially if they fall over a weekend or holiday. Once both the Seller and Buyer have signed all Settlement Documents, the documents are returned to the lender for approval. Once approved, the lender disburses the mortgage funds to the Title Company. Once the Title Company receives the funds, it can record the sale. Important Note: On the day you sign the "closing" documents, you likely will not receive keys right away, particularly if the purchase involves financing. Do not show up to "closing" in a moving van, expecting to leave with keys!

  • The proceeds of the new loan are "funded" by the mortgage provider.
  • Then, all closing documents are "recorded" at the County Recorder's office.
  • Once recorded, the sale is complete, and the buyer receives possession (unless stated otherwise).
  • The buyer can receive keys, garage door openers, manuals, and warranties. 

Move In!

The property is now yours, so move in and enjoy. Congrats!