A buyer in Utah submits an offer that includes a financing contingency. During the due diligence period, the buyer is unable to obtain mortgage approval. Under the Utah REPC, what is the buyer's remedy?
Correct Answer
B) The buyer may cancel and receive a refund of earnest money if cancellation occurs before the financing and due diligence deadlines
Under the Utah REPC, if the buyer cannot obtain financing and cancels before the applicable deadlines (financing deadline and due diligence deadline), the buyer is entitled to a refund of the earnest money deposit. After those deadlines pass, the earnest money may be at risk.
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