Utah's Financing and Appraisal Deadline Explained

When the appraisal condition is selected, the property must appraise for at least the purchase price under the standard form. If a licensed appraisal is lower, the buyer may cancel by written notice before the deadline and provide the required notice of appraised value.

Instead of canceling, the parties may negotiate a lower price, additional buyer cash, seller concessions, or another written resolution.

When financing is required, the buyer agrees to work diligently and in good faith. Before the deadline, the buyer may cancel if dissatisfied with the loan terms, subject to the earnest-money allocation written into the contract.

This makes the blank controlling how much earnest money goes to the seller especially important.

The standard REPC also addresses a failure to obtain the loan after the deadline. The transaction may be canceled, but the earnest-money consequences can be materially worse for the buyer. Buyers should not interpret the financing condition as unlimited protection through closing.

• Full loan application and required documentation
• Verification of income, assets, debts, employment, and funds to close
• Appraisal order and review
• Insurance quote and insurability review
• Resolution of lender conditions
• Review of interest rate, points, lender credits, mortgage insurance, and cash to close
• Written decision before the contractual deadline

• Waiting for the lender to warn the buyer
• Ordering the appraisal too late
• Assuming preapproval guarantees final approval
• Changing employment, debt, or credit before closing
• Failing to account for condo or property eligibility
• Missing the notice requirement for a low appraisal
• Letting the deadline pass while negotiations remain verbal

The deadline is a decision date, not merely a lender milestone. Buyers and their agents should know whether the appraisal is complete, whether the loan terms are acceptable, whether underwriting risks remain, and what earnest money is exposed before the deadline expires.

• Which deadline controls this issue?
• What must be delivered in writing?
• What money is at risk if the transaction is canceled?
• Does an addendum change the standard form?
• Is this a real-estate question, or does it require legal, tax, lending, inspection, or engineering advice?