What Must Be Disclosed When Selling a House in Utah?

DISCLAIMER: As a friendly reminder, this blog post is meant to be used for educational purposes only, not legal advice. If you need assistance navigating the legalities of what to include on a home seller disclosure form in Utah, HomeLight always encourages you to reach out to your own advisor.

Perhaps you’re ready to trade in your lawnmower for a set of golf clubs and move to a 55+ community. With median sales prices rising 4.1% in the past year, you’ve decided to cash out the equity in your suburban Salt Lake City home. But you’ve had some plumbing issues in the past, so you’re wondering exactly what needs to be disclosed to prospective buyers in Utah and whether you’ll have to make costly repairs before selling your house.

Or maybe you’re relocating for a job in the Beehive State’s expanding tech industry and want information about the property’s condition before committing your hard-earned savings.

We’ve consulted with a top real estate agent and researched items that must be disclosed to help make sense of the seller disclosure form in Utah.

What is a seller’s disclosure?

Most states require home sellers to reveal any material defects they are aware of or known problems that could significantly reduce property value or be a grave risk to people.

Sellers will complete a disclosure statement about the home’s condition and systems that are damaged, don’t work properly, or are unsafe. Some states have requirements for disclosing issues affecting the land or additional disclosures specific to that state. In addition, federal law mandates the disclosure of lead-based paint for houses built before 1978 to reduce the risk of lead poisoning that may cause neurological damage in young children.

Is a seller’s disclosure form required in Utah?

Although statutory law in Utah only mandates telling potential buyers if the house has been contaminated from the use, storage, or manufacture of methamphetamines, that’s not all you’ll have to divulge.

Utah is what’s known as a “Caveat Emptor” or “buyer beware” state, which means it’s ultimately the buyer’s responsibility to determine if the home they are purchasing has any issues. However, as the seller, you must also disclose known defects adversely affecting the property’s use and value that a buyer could not discover by a reasonable inspection, according to a ruling by Utah’s Supreme Court.

“In the world of real estate, it’s such a big asset and expense that a buyer is purchasing that a seller is required or obligated to tell them everything they know about the property so the buyer can go into it with full disclosure,” says Joel Carson, an award-winning real estate agent in Salt Lake City with over 33 years of experience. Buyers need to know what they’re getting and not discover major detrimental issues after the sale that are expensive to fix, like a sinkhole or a foundation that’s been moving.

“A seller needs to give that information to the buyer so they can make a decision on how they want to proceed,” says Carson.

Seller disclosure forms are legal documents, so take them seriously. Ask your real estate agent or attorney about anything you don’t understand. How you fill them out could make the difference between a successful sale and an unsuccessful lawsuit.

In the sections below, we’ll take a closer look at Utah’s Seller’s Property Condition Disclosure form.

What does the Utah disclosure form mean for buyers?

After reviewing the seller’s disclosure, buyers can make a more informed decision about going ahead with the purchase. The disclosure form offers some reassurance that the house isn’t a money pit, but also gives them a chance to back out if it reveals serious problems such as foundation issues or termite infestation.

Since there may be flaws unknown to the homeowner, buyers should hire a professional home inspector to look for defects that may not be obvious and pay close attention to items revealed on the disclosure form.

An incomplete disclosure statement or one with vague answers raises a red flag that the seller might be concealing something. After closing, if buyers discover that problems were intentionally left out, such as a malfunctioning HVAC system, they can seek money from the seller for repairs or sue for damages.

What does the Utah disclosure form mean for sellers?

Accurately completing the disclosure form enables sellers to satisfy the contractual requirements in section 7(a) of Utah’s Real Estate Purchase Contract (REPC) to provide a written statement of the property’s condition and legal obligations to disclose known material defects.

Answering questions truthfully and to the best of your knowledge will help evade the legal consequences and liability of not fully divulging property flaws. By bringing issues to the buyer’s attention prior to closing, you’ll lessen the risk of a lawsuit if defects are found after the sale goes through.

While you’re not expected to be aware of every single issue your home might have or reveal problems you know nothing about, being dishonest about known material defects or not disclosing them could be an act of fraudulent concealment or fraudulent nondisclosure.

For example, claiming you’ve never repaired your roof when you replaced a few shingles due to leaks could be considered an act of fraud. You might be accused of fraudulent nondisclosure by untruthfully stating that you haven’t detected any leaks in the roof.

“The seller could be sued for fraud if the buyer could prove that they knew something and didn’t disclose it,” says Carson. If the buyer discovers a geological report that wasn’t disclosed, the seller could end up in court.

If you have any questions about filling out a disclosure form, ask your real estate agent or consult a real estate attorney. Remember, honesty is the best policy for a smooth sales transaction without exposing you to legal liability and monetary damages.

What does a seller’s disclosure not do?

The home may have hidden problems, such as mold in the attic or termites in the crawl space, so the disclosure form won’t reveal issues unknown to the seller. Nor does the disclosure require the seller to conduct a thorough examination of the property or to fix anything that’s been disclosed. But if you opt for a pre-listing inspection, you will have to be upfront about all defects the inspector finds.

“A lot of sellers are not aware of the little detailed items that inspectors find,” says Carson. He explains that it would be difficult to prove that sellers knew something they didn’t disclose, like a cracked sewer line, which wouldn’t be discovered unless the sewer line was scoped.

Although it’s a legal document, there’s no guarantee that the seller hasn’t omitted any issues or provided misleading information. Thus, buyers shouldn’t rely solely on the disclosure form, but obtain a professional home inspection to get an accurate picture of the property’s condition.