Contracts
A Utah seller can legally back out of a signed purchase contract if:
AThey receive a higher offer
BThe contract contains a seller's contingency they have properly exercised✓ Correct
CThe closing date was set too quickly
DThey simply change their mind about selling
Explanation
A seller can exit a contract only for legitimate legal reasons—exercising a valid contingency in the contract, buyer's breach, or mutual agreement. Simply receiving a better offer or changing their mind is not a legal basis; it would constitute breach, exposing the seller to liability.
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Key Terms to Know
Contingency
A condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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