Property Ownership
In Utah, a developer who builds a condominium project must provide each buyer with a warranty covering:
ANo warranty—condos are sold as-is
BConstruction defects for specified periods under Utah's Right to Repair Act and implied warranty of habitability✓ Correct
CA lifetime warranty on all appliances
DA warranty from the title company only
Explanation
Utah's Right to Repair Act and implied warranty of habitability provide buyers with protection against construction defects. Developers must provide certain warranties and follow required dispute resolution procedures.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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