UT Real Estate key terms

The legal obligation of an agent to act in the client's best interest above the agent's own, commonly described as loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, and accounting for money and property.

Utah's term for dual agency, where one brokerage represents both buyer and seller in the same transaction. It requires informed written consent from all affected parties and restricts how far the agent may advocate for either side.

Information that could affect a reasonable person's decision to buy, sell, or lease property, or the price they would pay, such as known defects, zoning changes, or pending litigation. Licensees must disclose such facts to their clients.

The uninterrupted series of events that leads a buyer and seller to complete a transaction, used to determine which broker is entitled to a commission when more than one broker was involved in the deal.

The two essential steps in forming a contract: one party proposes definite terms (the offer) and the other agrees to those exact terms (the acceptance). Once accepted and communicated, a binding agreement exists.

Something of legal value exchanged by the parties to make an agreement enforceable, such as money, a promise to pay, or a promise to perform. In a sale, the price and the promise to convey are the consideration.

A deposit a buyer gives to show good-faith intent to complete the purchase. It is held in a trust or escrow account, applied to the price at closing, or released according to the contract if the sale fails.

A contract condition that must be satisfied before a party is obligated to complete the transaction, such as a satisfactory inspection, an appraisal, or loan approval. If the condition fails, that party may cancel and recover deposits.

A legal rule requiring certain agreements, including contracts for the sale of real property and leases longer than one year, to be in writing and signed by the party to be charged before they can be enforced.

The most complete form of property ownership, giving the holder broad rights to use, sell, lease, or give away the property, with no time limit and no conditions attached. It passes to heirs at the owner's death.

A right to use a neighboring parcel that benefits and runs with the dominant parcel, transferring automatically when that parcel is sold. A shared driveway providing access to a rear lot is a typical example.

Co-ownership by two or more people, each holding an undivided interest with no right of survivorship. Each owner may sell or will that share, and on death the share passes to the owner's heirs.

A property description that starts at a known point and follows compass bearings and measured distances around the boundary, returning to the point of beginning. It is common for irregular rural parcels.

Permission from a zoning board allowing a landowner to deviate from a zoning rule because the property's unique characteristics create hardship, such as an odd lot shape. It does not change the ordinance itself.

A use of property that was lawful when it began but no longer complies with current zoning, such as a shop in an area later zoned residential. It generally may continue but cannot be expanded without permission.

A private promise, usually written into deeds or a subdivision's recorded restrictions, that limits how owners may use their land, such as minimum setbacks or bans on commercial use. Courts may enforce it against later owners.

The water-rights doctrine followed in Utah that gives priority to the first person to put water to a beneficial use, regardless of whether the source touches that person's land. Earlier claims prevail during shortages.

The most probable use of a property that is legally permitted, physically possible, financially feasible, and produces the greatest value. Appraisers identify it before applying any valuation approach.

A broker's or agent's estimate of a property's likely selling price, built by comparing recently sold, pending, and active listings similar to the subject. It supports pricing advice but is not a licensed appraisal.

A valuation method that estimates value by comparing the subject property with recently sold similar properties, then adjusting for differences such as size, condition, location, and features. It is the most common approach for homes.

A three-party security instrument used instead of a mortgage in Utah, in which the borrower conveys title to a trustee to hold until the loan is repaid. On default, the trustee may conduct a nonjudicial foreclosure sale.

The loan amount divided by the property's appraised value or purchase price, expressed as a percentage. Higher ratios generally mean greater lender risk and usually require mortgage insurance.

The four components of a typical monthly housing payment: principal, interest, property taxes, and homeowner's insurance. Lenders use this figure to qualify borrowers and to set escrow collection amounts.

A deed in which the seller guarantees that title is clear and promises to defend the buyer against lawful claims to the property, including claims that arose before the seller owned it.

A deed that transfers whatever interest the grantor may have in a property without any warranty of title. It is often used to clear clouds on title or move property between family members.

A one-time-premium policy protecting an owner or lender against losses from title defects such as forged documents, undisclosed liens, or recording errors that existed when the policy was issued.

A federally required form given to a borrower before closing that itemizes final loan terms and settlement costs, including commissions, lender fees, taxes, and escrow amounts. It replaced the HUD-1 for most home loans.

Money a tenant pays a landlord to cover unpaid rent or damage beyond normal wear and tear. Utah law limits its use and requires an itemized accounting when the deposit is returned to the tenant.

An arrangement in which a tenant transfers part or all of the remaining lease term to another person while keeping an interest in the lease and staying responsible to the landlord, unless the lease provides otherwise.

A legal guarantee that rented housing will meet basic health and safety standards, such as working plumbing, heat, and weather-tight walls, whether or not the lease mentions those standards.

Categories of people that fair housing laws shield from discrimination in renting, selling, or advertising housing. Federal law lists race, color, religion, sex, national origin, familial status, and disability; state and local laws may add more.

Directing buyers or renters toward or away from particular neighborhoods because of the race, religion, national origin, disability, or other protected characteristic of the people who live there. It is a fair housing violation.

An antitrust violation in which competitors agree to set commissions, fees, or other terms rather than compete independently. Brokers must negotiate commissions individually and may not suggest that rivals charge the same rate.

In Utah, the licensed individual responsible for a brokerage's operations, including supervising affiliated licensees, handling trust funds, and ensuring compliance with license law and Division of Real Estate rules.

The state agency within the Department of Commerce that licenses and regulates Utah brokers and sales agents, investigates complaints, and enforces real estate statutes and commission rules.

A separate bank account a broker uses to hold client money, such as earnest money, rents, or security deposits, apart from the broker's own funds. Records must show each client's share and remain open to audit.

A Utah fund that can reimburse consumers who obtain a court judgment against a licensee for fraud or misrepresentation but cannot collect because the licensee is unable to pay the judgment.

A written notice Utah licensees must give prospective buyers and sellers explaining the types of agency available and the duties owed, so consumers know whom the agent represents before signing an agreement or sharing confidential information.

A written statement required by Utah law for most residential sales, in which the seller reports known defects and other material facts about the property before the buyer signs a purchase contract. Limited statutory exemptions apply.

The standard real estate purchase contract form widely used by Utah licensees, setting out price, deadlines, contingencies, earnest money, title and closing duties, and remedies. It is a form contract that parties may modify in writing.