What Must Be Disclosed When Selling a House in Utah?

When is Utah’s disclosure form required to be submitted?

Disclosure forms are given to the buyer after agreeing on the price and before closing during the buyer’s due diligence period. A seller disclosure deadline is specified in the REPC, usually within five to seven days after the contract is signed. Your real estate agent may provide these documents much earlier so you have time to complete them and consult a real estate attorney.

Carson asks sellers to fill out disclosure forms at the beginning of the sales process and includes them on the multiple listing service (MLS) as a downloadable document so potential buyers can view them. “It helps the seller because if we can get in a multiple offer situation, for instance, the more the buyer knows up front, the higher the price may be that they’re willing to offer,” he explains.

Now let’s take a more detailed look at what home sellers in Utah need to disclose to buyers.

Don’t leave anything out because it’s better to give them everything and let them make a decision than give the short version and then it comes to bite them down the road. Joel Carson

What do I have to disclose when selling a house in Utah?

Although Utah is a “Caveat Emptor” or buyer beware state where it’s the buyer’s responsibility to determine if the home has any issues, that doesn’t mean you’re off the hook when it comes to your property’s defects or that you can conceal them.

The Utah REPC requires that sellers disclose known problems with the home that could affect the buyer’s purchase decision. This is accomplished by completing the Seller’s Property Condition Disclosure, which was recently updated by the Utah Association of Realtors to make it more user-friendly.

For houses constructed before 1978, you’ll also have to fill out the Disclosure & Acknowledgement Regarding Lead-Based Paint and/or Lead-Based Paint Hazards.

If you’re only selling a lot, the Seller’s Property Condition Disclosure (Land) is the applicable form addressing issues that affect the land.

When it comes to filling out the disclosure document, Carson advises sellers to over-disclose. “Don’t leave anything out because it’s better to give them everything and let them make a decision than give the short version and then it comes to bite them down the road,” he says.

We’ve highlighted the key issues you need to know when preparing your disclosure statement.

Home improvements

If you’ve remodeled your kitchen or added an in-law suite, buyers will want reassurance that the work was done right and with the proper permits. While you don’t have to explain cosmetic changes such as paint or carpet, sellers in Utah are required to provide details about:

• Remodeling projects, room additions, structural modifications, and other alterations or improvements made by the seller or previous owners
• Issued and closed permits
• Contractor who did the work

Legal, zoning, or use compliance

Your buyer wouldn’t want to inherit a lawsuit, so if your property is involved in litigation or in breach of zoning regulations, you’ll need to disclose the following:

• Illegal or nonconforming use, such as renting your house in violation of local zoning ordinances or without a business license if required
• Existing or threatened legal action against your property
• Violations of local, state, or federal laws and regulations
• Assessment for property taxes as greenbelt or agricultural land

Roof

Buyers may think twice about purchasing a home requiring a huge investment in a new roof or renegotiate the terms of the sale. The disclosure form asks about the condition of your roof, including:

• Past and present leaks
• Defects such as structural issues, dry rot, moisture, or ice damage
• Roof repairs or replacements

Utilities

Dropped phone calls and slow internet connectivity can be a real headache, so sellers in Utah are required to note any past or present problems with utility services and systems such as natural gas, electricity, phone, TV, and internet.

Water supply

Safe drinking water is essential to life, so you’ll need to answer questions about your home’s culinary water supply in addition to secondary water that keeps your lawn green. Be prepared to provide information about:

• Governmental entity or water company that provides water service
• Problems with water supply, such as water quality and inadequate or excessive water pressure
• Well, spring, or other water source on the property or shared with another person or entity

Sewer/septic tank

Utah’s seller disclosure form requires you to specify if your property has a public sewer or septic/holding tank. Provide details about problems such as broken sewer lines, consistently slow or clogged drains, as well as repairs or replacement of the sewer lateral line or septic/holding tank. If you have a septic/holding tank, you’ll have to disclose how many times it’s been inspected and/or pumped in the past five years and who provided the service.

Home systems

Faulty heating and cooling systems make your home an uncomfortable place to live, while defective electrical components present fire hazards. Utah sellers will have to disclose the following:

• Malfunctioning heating or air conditioning equipment and their components
• Winterization of the evaporative cooling system
• Defective electrical switches, outlets, or other parts of the electrical system
• Equipment that is not owned by the seller

Equipment and appliances

To avoid surprises when the buyer moves in, such as a broken refrigerator or payments due on financed appliances, Utah sellers are required to disclose defects or problems with the following:

• Equipment included with the sale, such as air purifier, central vacuum, fire sprinkler system, garage door opener, security system, smoke alarm, water heater, propane tanks, etc.
• Appliances including dishwasher, disposal, freezer, refrigerator, washer, dryer, oven, range, microwave, and trash compactor
• Issues with gas or wood burning fireplace and potbelly, wood, or pellet stove
• Any equipment or appliances that are not owned by the seller

Interior and exterior features

Be prepared to describe your property’s condition both inside and out. The seller’s disclosure form inquires about problems with:

• Interior features such as ceiling fans, elevator, sauna, skylights, flooring, and other components inside your home
• Exterior features, including gas barbecue, heated driveway, sprinkler system, pool, hot tub, and additional items located outdoors
• Exterior surfaces, such as moisture damage behind stucco

Pests and dry rot

You’ll need to make buyers aware of uninvited critters living in your home. If you sell a house in Utah, you’ll need to disclose the following:

• Past or present problems with termites, dry rot, rodents, and other pests as well as damage they caused
• Written warranties or termite and pest control coverage currently in place

Structural integrity and problem soils

Foundation and other structural issues could be a major expense, so you’ll need to reveal any of these problems and repairs that were completed:

• Settlement or heaving of soil, such as collapsible or expansive soils and poorly compacted fill
• Sliding or earth movement, including landslides, falling rocks, debris, or mud flows
• Movement, shifting, deterioration, or other problems with walls or foundation
• Construction materials, concrete, footings, underground tanks, trash, and other subsurface debris that’s been buried or covered

Boundaries and easements

Buyers wouldn’t want to move into their new home and be forced to tear down a beautiful deck because it crossed over property lines into the neighbor’s yard. This section requires you to reveal the following:

• Fence, deck, or other improvement that either extends onto an adjoining property or is located on adjacent land and encroaches on your premises
• Boundary disputes or conflicts
• Unrecorded easements affecting your property

Mold and moisture

Even though Utah has a dry climate, mold can grow indoors and be detrimental to health, especially for people with respiratory illnesses and allergies. Moisture from leaks, flooding, and condensation can lead to mold growth. These mold and moisture issues must be disclosed by Utah sellers:

• Mold on walls, ceilings, floors, or other interior features, except for an occasional buildup of mold and mildew in the bathroom
• Inspection of property for mold and copies of reports
• Water leakage or accumulation and dampness in the basement and/or crawl space
• Damage caused by flooding, lot drainage, moisture seepage or condensation, plumbing leaks, sewer overflow/backup, or leaking appliances and other equipment
• Repair or replacement of main water line, including who did the work and when it was done
• Wetlands located on the property and attempts to mitigate wetlands issues through the Army Corps of Engineers
• Location in a floodplain
• Standing water or flooding in any part of the property

Hazardous materials or conditions

Sellers in Utah are required to report any hazardous materials or conditions that can impact the health and safety of individuals living in the home. The disclosure form asks the seller to disclose the presence of:

• Asbestos
• Lead-based paint
• Methane gas
• Radon
• Radioactive or toxic materials
• Urea-formaldehyde foam insulation
• Buried storage tanks and lines
• Contamination from the use, storage, or manufacture of methamphetamines

Homeowner’s association

Some buyers may not be interested in abiding by the rules of a condominium or homeowner’s association (HOA) or paying their fees. You’ll have to disclose whether your property is governed by such an organization as well as the following:

• Payment amount and frequency
• Included utilities and/or services
• Dues or assessments for maintenance of common grounds
• Change of ownership fees
• HOA contact information
• HOA involvement in litigation

Unpaid assessments

You can’t expect buyers to pay debts you owe, so you’re required to disclose HOA, municipal, special improvement district, public infrastructure district (PID), and other assessments that are unpaid, pending approval, or have not yet been billed.

Insurance claims

Just because you filed an insurance claim years ago when a small fire damaged your kitchen doesn’t mean that you can withhold this information. Sellers in Utah must disclose insurance claims for loss or damage to the home as well as claims filed by the HOA.

Energy efficiency, solar panels, and alternate power systems

Buyers will be thrilled to learn about energy-saving improvements that reduce utility bills, so be sure to state if you’ve added insulation, sealed air leaks, and installed efficient lighting, windows, or heating and cooling systems.

If you’ve decided to go green by installing solar panels or your home has other sources of power, you’ll need to disclose details such as:

• Type of power system such as solar, wind, or generator
• Problems with these systems and/or components
• Is equipment owned, leased, financed, or subject to a power purchase agreement
• Contact information for solar company or alternate power system provider

What disclosure exceptions are allowed in Utah?

Utah doesn’t allow any disclosure exemptions, so you are still required to complete the seller disclosure form even though you may have inherited the property and never lived there.

If you are aware of anything about the property’s condition that could affect a buyer’s decision to purchase the home, you should do your best to fill out the disclosure statement. Although you may live in another city, you might have talked to the homeowner about various problems or noticed issues during a visit. For questions that you can’t answer, just write that you don’t know.

Although it’s very unlikely, if you haven’t lived in the home and know nothing about its condition, you can amend the REPC and remove section 7(a) requiring a seller’s disclosure. Expect the buyer to conduct a comprehensive inspection in this case.

To review Utah’s disclosure rules and documents, visit the Utah Association of Realtors website.

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Q&A: More expert tips about disclosures in Utah

What can I leave out of my Utah seller’s disclosure?

Although Utah requires sellers to disclose anything they know about the property, there are a few exceptions, such as a death in the house. Carson recalls a buyer who was under contract and found out about a gruesome murder in the house from talking with neighbors. The buyer didn’t back out, but remodeled the house, which lightened the neighborhood’s feelings about the property.

With so much information at your fingertips by doing a Google search on the internet, buyers might ask about details that you do not have to disclose. Then, it’s best to either be candid or state that you prefer not to answer.

What if I accidentally leave something out of my disclosure?

You may not remember everything that happened which could affect your home’s condition, so don’t fret if you forget something that occurred years ago.

“There might be a water stain that the inspector discovers and then it rocks the seller’s brain. ‘Oh yeah, the refrigerator line leaked and I forgot about that,’” says Carson. As long as it’s explainable, you can add an addendum to the seller’s disclosure about the issue that had been left out of the original form.

What if something breaks or is discovered after the disclosure?

Since your home has to be turned over to the buyer in the same condition it was in when the purchase contract was written, you will have to repair appliances that stop working or anything that breaks after completing the disclosure form unless the buyer is willing to accept a credit.

Are you ready to sell or buy a home in Utah?

Whether you’re looking to sell or buy a home in Utah, the seller’s disclosure document is critical to the sales process.

If you’re selling a home in Utah, it’s vital to disclose any defect or issue that you are aware of so buyers have every fact when deciding whether to move forward with the transaction. Transparency is essential for a smooth sale and to avoid legal and financial repercussions, so you’ll want to fully understand and address items that must be disclosed.

Evaluating a property’s condition, flaws and all, will help buyers make a purchase decision they are not likely to regret. But since sellers may not know each problem their home has, the buyer’s due diligence should include a professional home inspection to reveal issues not mentioned in the disclosure form.

When you’re ready to make your move, HomeLight’s Agent Match platform can connect you with top-performing agents in Utah who have the local experience and market knowledge to successfully guide you through every step of the home-selling or buying journey — from disclosures to closing, put an accomplished real estate professional in your corner.

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