Signing the Contract

When selling a house for cash in Utah, you must accept the buyer’s offer and complete a Purchase and Sale Agreement contract. The cash buyer often makes a written offer letter with contract contingencies to ensure they get a fair deal.

The contract will not have a financing contingency, but it may necessitate an appraisal or inspection contingency if the buyer wishes to check out the home before purchase.

The Home Inspection

If the buyer has requested an inspection, the house will need to undergo one to check for repairs. The contingency may request a deal renegotiation if the house requires extensive repairs, or that the seller fixes the property before finishing the process.

The buyer can also request an appraisal which could influence them to renegotiate the deal if they find that the Utah property costs more than its value. As a seller, make sure to price your home honestly to save yourself from convoluted cash purchases.

Escrow and Other Payment Processes

The first official payment process involves verifying proof of funds. Since the buyer intends to pay the full price to close the deal, you will need to make sure that they have this money. Checking with their bank and asking for upfront earnest money can get the job done. The real estate agent can help here.

As a buyer, you will want to include proof of funds with your offer letter to speed up the process of selling a house for cash in Utah.

In Utah, it is customary for the buyer to get title insurance to protect them against financial losses from misinformation. Either the buyer, seller, or real estate agent can choose the escrow and title company, though it is generally up to the buyer.

The escrow manages all closing documents, aids in fund transfer, and fills out legal paperwork. The title company ensures that the property can enter someone else’s name, searches for property liens and heirs, and makes sure that the property ownership changes upon closing.

The buyer will need to secure a check for the purchase. Despite the name, all-cash offers do not include an exchange of paper money as that is illegal in the United States. However, you will pay the full costs upon purchase through an electronic transfer or a cashier’s check.

Both buyers and sellers may need to pay for other fees and costs associated with closing, realtors, appraisals, inspections and other third parties involved in the sale. Make sure you have the necessary funding for this event.

If you opted to sell your house as-is or get an all-cash offer through a third-party like Cash Quick Buyers, you may need to complete other steps.

Closing Documentation and Transfers

There are a handful of closing documents you can expect to sign upon selling a home:

• Final closing instructions

• Loan payoff statement

• HUD-1 settlement statement

• Title deed

• Certificate of title

• Bill of sale

• Mechanics liens

• Statement of information

• Statement of closing costs

Final closing instructions are usually signed when you open your escrow account, but you may do them at the end. This document outlines the tasks the escrow company completes. The loan payoff statement shows how much you owe your mortgage lender on closing day, which should equal how much the escrow company pays on your behalf.

The HUD-1 settlement statement accounts for all of the money involved, including all that has been negotiated, payoff balances, sales price, utility bills, and pro-rated tax. The title deed is the paper that officially transfers ownership, and signing the certificate of title means you have to sell your house.

A bill of sale outlines any additional items in the sale, such as furniture. The mechanics liens ensure you have no additional liens on the house. The statements of information and closing costs make you swear your identity is true and that you know all closing costs beforehand.