Home Buying in 84102>Question Details

Scott, Home Buyer in

cancel purchase contract based on inspection

Asked by Scott, Wed May 23, 2012

Hi. We were going to buy a house but based on the inspection report we have decided to cancel the purchase. Is there an official document we use to cancel in this kind of way? Or do I simple email the sellers agent one or two sentences with the rejection?

Thanks

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3
Dan Walker’s answer
The REPC or Real Estate Purchase Contract as it is called in Utah is your friend! Section 8.1-b and c spell it out clearly.

8.1
(b) Buyer's Right to Cancel or Resolve Objections. If Buyer determines, in Buyer's sole discretion, that the results of the Due Diligence are unacceptable, Buyer may either: (i) no later than the Due Diligence Deadline referenced in Section 24(b), cancel the REPC by providing written notice to Seller, whereupon the Earnest Money Deposit shall be released to Buyer without the requirement of further written authorization from Seller; or (ii) no later than the Due Diligence Deadline referenced in Section 24(b), resolve in writing with Seller any objections Buyer has arising from Buyer's Due Diligence.
(c) Failure to Cancel or Resolve Objections. If Buyer fails to cancel the REPC or fails to resolve in writing any objections Buyer has arising from Buyer's Due Diligence, as provided in Section 8.1(b), Buyer shall be deemed to have waived the Due Diligence Condition.
0 votes Thank Flag Link Thu May 24, 2012
There is not an official "addendum" but you are right, it needs to be in writing and before the deadline for inspection.
0 votes Thank Flag Link Wed May 23, 2012
Agents do use a cancelation for that states where the earnest money gets released and to whom. However the repc (if you used the Utah state form) does state that the buyer can cancel in
Web Reference: http://UtahCribs.com
0 votes Thank Flag Link Wed May 23, 2012
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