Utah Due Diligence Period Explained

You have a short window to learn everything you can about a home before you are locked in. In Utah, that window is called the due diligence period, and it can make or break your purchase. If you understand the deadlines, fees, and inspection steps, you can move forward with confidence and protect your money.

In this guide, you’ll learn how the due diligence period works under Utah’s standard purchase contract, what to inspect in Salt Lake City homes, and how to avoid costly mistakes. You’ll also get a simple checklist you can follow from acceptance to deadline. Let’s dive in.

Utah’s due diligence period, explained

The due diligence period is the time you and the seller agree to in the contract to investigate the property and decide whether to proceed. In Utah, most buyers and sellers use the Utah Association of REALTORS Residential Real Estate Purchase Contract, often called the REPC. The REPC sets a specific due diligence deadline by date and time. Your actions and any notices must meet that deadline.

During due diligence, you typically complete inspections, review seller disclosures, read title and HOA documents, verify permits, and advance your loan file. If you find problems you cannot accept, you can request repairs or cancel before the deadline, following the contract.

It helps to separate due diligence from other protections:

• Due diligence vs. financing contingency. A financing contingency is separate. If your REPC includes one, it has its own deadline and rules. You may still be protected for financing reasons after due diligence ends, but only if your contract says so.
• Due diligence vs. earnest money. Earnest money is a deposit held in escrow. It is subject to its own rules. Whether it is refundable depends on the timing and the way you cancel under the contract.
• Due diligence vs. inspections. In Utah, inspections are part of your overall due diligence rights and timing under the REPC.

How REPC deadlines work together

Your contract’s effective date starts the clock on several key items. Common REPC deadlines include:

• Contract acceptance date. The date the REPC is fully signed. This anchors all other dates.
• Earnest money delivery. Often due within 1 to 5 business days after acceptance.
• Seller disclosure and HOA document delivery. The seller provides disclosures and, if applicable, HOA documents by the contract’s stated date.
• Due diligence deadline. Your final date and time to cancel under due diligence or deliver inspection objections.
• Appraisal and financing deadlines. If used, these are separate and must be tracked.
• Closing date. The scheduled date for recording and transfer.

Here is how they interact in practice:

• The due diligence deadline is the bottleneck. You need enough time for general and specialized inspections, plus time to negotiate repairs.
• Written notices matter. The REPC generally requires you to give written notice by the deadline to preserve rights to cancel and recover earnest money. Verbal statements usually do not count.
• Extensions are negotiable. If you need more time, ask early. Any extension must be agreed to in writing with new dates.

Money on the line: due diligence fee and earnest money

Understanding what is refundable and what is not can save you stress.

• Due diligence fee. Many Utah deals include a due diligence fee that you pay directly to the seller when the contract is signed. It compensates the seller for taking the home off the market while you investigate. This fee is usually nonrefundable if you cancel, unless your contract says otherwise. Some agreements credit it to the purchase price if you close.
• Earnest money. This is held in escrow by a title company or brokerage. If you cancel properly within your contractual rights and deadlines, you generally receive a refund according to the REPC and escrow instructions. If you miss deadlines or cancel outside your rights, the seller may have a claim to the earnest money.

Cancellation mechanics and timing are critical:

• If you cancel under due diligence, you must send written notice by the due diligence deadline to the seller or the seller’s agent in the manner the REPC requires. Keep proof of delivery.
• If you cancel for financing reasons, follow the financing contingency process and deadline in your contract.
• If you cancel properly before the applicable deadline, your earnest money is typically refunded under the contract. The due diligence fee is typically not refunded.

What to inspect in Salt Lake City

Start inspections right after acceptance. In the Salt Lake Valley, these items deserve special attention.

• General home inspection. This covers structure, roof, plumbing, electrical, HVAC, and interior components. Book it within the first 48 to 72 hours. Use a licensed inspector experienced with local construction and climate.
• Radon testing. Many parts of Salt Lake County have moderate to high radon potential. Testing is inexpensive and noninvasive. Consider a short-term or continuous monitor test.
• Sewer scope. Older Salt Lake City homes may have clay or cast iron lateral lines and mature trees. A camera scope can reveal root intrusion, offsets, or collapses.
• Roof and attic. Look for ice dam risk, flashing condition, ventilation, and insulation levels. These affect comfort and energy costs.
• Foundation and structure. If you see cracks or slope issues, or if the home sits near foothills or on fill, consider a structural engineer or foundation specialist.
• HVAC and chimney. Check furnace and AC operation and age. For fireplaces and masonry chimneys, a specialist inspection adds clarity.
• Pest and wood‑destroying organisms. Termite pressure varies, but older homes can have moisture‑related wood issues. Order a pest or WDI inspection if there are crawlspaces or exposed wood.
• Moisture and mold. Basements and crawlspaces can trap moisture. If there are musty odors or visible staining, get targeted testing and remediation bids.
• Lead‑based paint. For homes built before 1978, federal rules require lead disclosures. You may choose lead testing.
• Specialty inspections. Order pool or spa checks, solar system inspections, septic or well tests outside municipal service, and always review HOA documents for attached homes.

Timing tip: Book the general inspection immediately. Then schedule add‑ons like radon, sewer scope, WDI, and specialists early enough to review results and still act before your deadline.

Your 10‑step due diligence checklist

1. Read the REPC with your agent to confirm exact dates for earnest money, due diligence, appraisal, and financing.
2. Pay earnest money and any due diligence fee as the contract requires and keep receipts.
3. Schedule your general home inspection within 24 to 72 hours of acceptance.
4. Based on the home’s age and location, schedule radon, sewer scope, WDI, structural, HVAC, chimney, and other targeted inspections.
5. Order and review the title commitment; read seller disclosures carefully.
6. Check permit history with Salt Lake City Building and Safety and Salt Lake County records.
7. If the property is in an HOA, obtain and review HOA resale documents immediately.
8. Organize findings in writing and decide whether to request repairs or cancel.
9. If you request repairs, send a clear written list and allow the seller time to respond as the REPC outlines.
10. If you cancel, send written notice before the deadline and keep proof of delivery.

Common pitfalls to avoid

• Waiting to book inspections. Local specialists can book out. If you wait, you may miss your chance to evaluate the property fully.
• Missing written notice. If you do not send written cancellation or objections by the deadline, you can lose key protections.
• Mixing up fees. A due diligence fee is often nonrefundable, while earnest money can be refundable if you cancel properly. Know which is which.
• Skipping permit checks. Unpermitted work is not unusual in older neighborhoods. Verify what was permitted and what was not.

Real‑world Salt Lake examples

• Avenues bungalow. You go under contract on a 1920s bungalow. Early in due diligence, you order a sewer scope for the old clay line, a WDI inspection, radon test, and a structural consult for visible settling. If the findings are not acceptable, you deliver written cancellation before your deadline and recover your earnest money under the REPC. A due diligence fee, if paid and nonrefundable, is typically kept by the seller.
• Mid‑century west‑side home. You negotiate no due diligence fee. Your general inspection reveals a failing furnace and worn roof. You either secure a seller credit or cancel before the deadline. Because you acted on time under the contract, your earnest money is refunded according to the REPC.

Quick timeline for your first 10 days

• Day 0 to 1: Confirm all deadlines with your agent. Deliver earnest money and any due diligence fee.
• Day 1 to 3: Complete general inspection. Order radon test, sewer scope, and any immediate add‑ons.
• Day 3 to 5: Review seller disclosures, title commitment, and HOA documents. Schedule specialists as needed.
• Day 5 to 7: Receive inspection reports. Get repair bids if needed. Evaluate your options.
• Day 7 to 9: Send repair requests in writing and allow time for a seller response.
• Day 9 to deadline: Decide. If you will cancel, send written notice before the exact deadline and keep proof.

Final thoughts and next steps

The exact language of your signed REPC controls your rights, deadlines, and notice requirements. If you act early, keep everything in writing, and track your dates, you can protect your money and make a clear decision with less stress. If anything is unclear, ask questions right away. A small clarification today can prevent a big problem later.

If you want a calm, step‑by‑step process through Utah due diligence and Salt Lake City inspections, reach out. We will map your deadlines, book the right local inspectors, and keep your file on track so you can focus on the big picture. Let’s talk about your purchase plan with Nick Booth Real Estate.

FAQs

What does the Utah due diligence period cover?

• It covers your agreed time to investigate the property, complete inspections, review disclosures, confirm title and HOA documents, and decide whether to proceed or cancel under the REPC.

Is a Utah due diligence fee refundable if I cancel?

• It is usually nonrefundable once paid, unless your contract says otherwise; some agreements credit the fee to your purchase price if you close.

How does the financing contingency differ from due diligence in Utah?

• The financing contingency is separate with its own deadline; you may have financing protections after due diligence ends only if the REPC includes that contingency and you meet its terms.

What inspections are most important for Salt Lake City homes?

• Start with a general inspection, then consider radon testing, a sewer scope, roof and attic checks, HVAC and chimney inspections, and moisture or WDI evaluations based on age and location.

How do I cancel during due diligence under the Utah REPC?

• Send written notice to the seller or their agent before the due diligence deadline and keep proof of delivery; oral statements usually do not preserve your contract rights.

Can I extend my due diligence deadline in Utah?

• Yes, but only by mutual agreement; request the extension early and make sure any new dates are documented in writing and signed by both parties.