State guide

Buying or Selling a Home in Utah: What You Need to Know

Utah is a title-company closing state with no state transfer tax, so closings are usually run by a title insurance company rather than an attorney and sellers avoid one of the big extra costs charged in some other states.

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TL;DR

Utah is a title-company closing state with no state transfer tax, so closings are usually run by a title insurance company rather than an attorney and sellers avoid one of the big extra costs charged in some other states. Real estate practice runs on a standard form called the Real Estate Purchase Contract (REPC) and is regulated by the Utah Division of Real Estate, which approves the forms and enforces conduct rules. After the 2024 National Association of Realtors settlement, buyers' agents in Utah must sign a written buyer broker agreement spelling out their pay before showing homes, and Utah has its own twists like 'limited agency' (instead of 'dual agency') and strict meth-contamination disclosure.

10 things every Utah buyer or seller should know

  • Utah is a title-company closing state. Most home closings in Utah are handled by a licensed title insurance company that does the title search, issues title insurance, and disburses the money at closing. Hiring an attorney is optional, not required, for typical residential deals.

  • Utah does not charge a state real estate transfer tax when a home is sold. Sellers still pay county recording fees to put the deed on file, but those fees are flat and do not scale with the sale price the way transfer taxes in some other states do.

  • Since the NAR settlement practice changes took effect on August 17, 2024, a buyer's agent in Utah who participates in the MLS must have a signed written buyer broker agreement in place before taking a buyer to tour a home. The agreement has to state in writing exactly how the agent gets paid, such as a flat fee or a specific percent, not vague language like 'whatever the seller offers.'

  • Utah law requires real estate agents to give every buyer and seller a written Agency Disclosure Notice at first substantive contact, before discussing price or motivation. The notice explains the three Utah agency relationships: seller's agent, buyer's agent, and 'limited agent,' which is Utah's name for dual agency.

  • Utah has one of the strictest methamphetamine contamination disclosure laws in the country. A seller who knows the property was used as a meth lab or is contaminated by meth residue must disclose that on the Seller's Property Condition Disclosure form, and an agent with actual knowledge has to disclose it too.

  • Utah's Fair Housing Act protects more groups than the federal law in one important way: 'source of income' is a protected class in Utah. That generally means a landlord or seller cannot reject a buyer or renter just because they pay with a housing voucher or Section 8 assistance.

  • Federal law requires sellers and landlords of homes built before 1978 to give buyers an EPA-approved lead-based paint disclosure form, the 'Protect Your Family from Lead in Your Home' pamphlet, and a 10-day window to inspect for lead paint. This rule applies in Utah just like in every other state.

  • When a Utah home is in a homeowners association or a condominium, the seller has to give the buyer the governing documents and, for condos, a resale certificate with current dues, special assessments, and the budget. This comes from the Utah Community Association Act for HOAs and the Utah Condominium Ownership Act for condos.

  • Earnest money in a Utah deal does not go to the agent or the seller directly. By rule, it must be deposited into the principal broker's trust account by the deadline set in the Real Estate Purchase Contract, which protects the money until the deal closes or is canceled.

  • If the seller of a Utah home is a foreign person under the federal FIRPTA rules, the buyer (usually through the title company) must withhold and send the IRS a percentage of the sale price, typically 15 percent. This is a federal tax rule and applies to Utah closings whenever the seller is a nonresident alien or foreign entity.

The guides

Common questions

Do I need a lawyer to buy or sell a home in Utah?
No. Utah is a title-company closing state, so a licensed title insurance company normally runs the closing, handles the title search, and disburses funds. You can hire an attorney to review documents or advise you, but it is optional for a standard residential deal.
What contract will we actually sign when I buy or sell a Utah home?
Almost every Utah home sale uses the Real Estate Purchase Contract, or REPC, which is the standard form approved by the Utah Division of Real Estate. It covers the price, earnest money, financing terms, inspection deadlines, and other contingencies, and most Utah brokerages and MLS systems require their agents to use it.
Will I owe a state transfer tax when I sell my house in Utah?
No. Utah does not impose a state-level real estate transfer tax when you sell a home, which is a real cost savings compared to states that charge a percentage of the sale price at closing. You will still pay modest county recording fees for the deed and related documents, but those are flat fees, not a tax on the price.
Do I really have to sign a contract with a buyer's agent before they show me homes?
Yes. After the NAR settlement practice changes that took effect on August 17, 2024, a Utah buyer's agent who is part of the MLS must have a signed written buyer broker agreement before taking you on a property tour. The agreement has to spell out the agent's pay as a specific dollar amount or formula, so you know up front what you may owe.
Can the same Utah agent represent both me and the other side of the deal?
Yes, but it works differently than in some states. Utah uses 'limited agency' instead of 'dual agency,' and both the buyer and the seller have to give written informed consent before any offer is written. The limited agent cannot share your bottom-line price with the other party or advocate for either side, so you give up some advice in exchange for the convenience.
What do I have to tell buyers about the condition of my Utah home?
Sellers in Utah complete a Seller's Property Condition Disclosure form, which is part of the REPC paperwork, and have a legal duty under Utah Code 61-2f-307 to disclose all known material defects and adverse facts that could affect a buyer's decision or price. That includes big-ticket items like roof leaks, foundation issues, and known meth contamination, even though Utah does not have a single standalone disclosure statute.
What if the Utah home I want to buy is in an HOA or condo?
The seller has to disclose that the property is in an association and provide the governing documents, like the declaration, bylaws, and rules. For condominiums, the seller also has to provide a resale certificate showing current dues, any special assessments, and the association's budget and financial statements, so you can see what you are signing up for.
If my Utah home was ever used as a meth lab, do I have to tell buyers?
Yes. Utah's Illegal Drug Operations Property Act and the Division of Real Estate's disclosure duties require sellers to disclose known meth contamination on the Seller's Property Condition Disclosure form. Hiding it can expose you to liability and unwind the sale, and an agent who knows about the contamination has to disclose it too as a material fact.
Where does my earnest money sit between offer and closing in Utah?
Utah rules require earnest money to be deposited into the principal broker's trust account, not the agent's personal account or the brokerage's operating account. The REPC sets the deadline by which the broker has to deposit it after the contract is signed, which keeps the funds protected until the deal closes or is canceled.
Is there any protection if a Utah agent cheats me out of money?
Yes. Utah has a Real Estate Education, Research and Recovery Fund that can pay actual monetary damages caused by a licensed agent's or broker's fraud, willful misconduct, or negligence in a real estate deal. You first have to win a court judgment against the licensee, then apply to the Division of Real Estate to recover from the fund up to the statutory limits.

Glossary

2 terms
NAR — National Association of Realtors
The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service
The shared database agents use to list and find homes for sale. Most homes you'll see online started here.