May 31st, 2008
New Utah Real Estate Purchase Contract (REPC)
Utah’s draft Real Estate Purchase Contract (REPC) is online and currently in it’s public comment phase. I’ve given the state my feedback on the contract. I’m quite happy to see that the contract has language governing e-mail transmissions and other electronic transmissions, but I was disappointed to see that the Real Estate Commission has yet to address the confusing verbage at the top of the contract:
Utah law requires real estate licensees to use this form. Buyer and Seller, however, may agree to alter or delete its provisions or to use a different form.
Unfortunately, this leaves licensees like me stuck in a conundrum: There are many contracts for the purchase (or eventual purchase) of real estate in which I am a principal (that is, a Buyer or Seller), and which aren’t appropriate for the REPC. I’d like to use some other contract. Am I allowed to? The verbage is unclear and leaves a logical loophole. I contacted the Utah Association of REALTORs and asked their lawyer this question. His answer? In his opinion, acting as a principal gives you the same recognitions that a non-licensed Buyer or Seller has. He followed this opinion with the phrase, “just to be safe, you may want to contact the Division of Real Estate”.
I followed up with the Division of Real Estate’s principle lawyer. His answer: The law is vague, but you must always use the Utah approved REPC, regardless of your status in the transaction. So — two lawyers that specialize in Real Estate Law, and two different results. Can’t we just clear up the language? I hate wasting the paper to print a REPC, only to write an addendum that says all language replaces and superceeds the REPC. Can’t we do a bit better?
