This section outlines the consequences of a contract delay by the buyer or seller. The standard, which may be caused by one of the various agreements listed in the various sections of the overall contract, generally leads to the termination of the contract, although there remains an option (normally through legal action) for the non-failing party to compel the defaulting party to enforce the CPP. In addition to terminating the contract in the event of a delay, there is often financial damage attributed to the non-failing party. Section 2 of Utah REPC clearly states the purchase price. The purchase price is divided into different components of the agreed total price, including the serious money deposit (normally applied to the final purchase price), the amount financed by a mortgage, each amount of financing from the seller and the amount made available by the buyer at closing to finalize the financing of the total purchase. If the tenants occupy the property that is purchased, their agreement with the seller as the owner must be taken into account in light of Section 4 of the Utah REPC. The seller of a property is required to inform the buyer of any leases that would affect the property. Although many sellers may deposit serious money into their own account, or some other way to hold the cheque, it is highly recommended that the parties agree to a trust agent to deposit the money and keep it. The most likely candidate would be the title company on which both parties can agree on the conduct of the accounts.
The seller`s role in this due diligence process is to provide accurate information about the property sold. It is usually a matter of filling out the seller`s property disclosure form, available on the Utah State website. The form covers everything from descriptions of the condition of the roof and key equipment such as heating and air conditioning, to explaining the layouts or complements of the house to information on water and other services. It also includes an information section on a owners` association (HOA) if it applications.