Breaking contracts is a bad idea…and it’s gonna hurt if you do.
0:00 – Introduction. Section 16 of the Utah Real Estate Purchase Contract (REPC) is about breaking the contract — also called “Default” — and what the remedies are.
2:16 – Options after Default. You’ve got three options. 1) Earnest money is forfeit. 2) Maintain earnest money where it is (in a trust account) and sue for performance (completing the contract). 3) Return the earnest money, and sue for damages and any other remedy at law.
3:38 – Examples of Default. Going past a voidable section, and then backing out for that section.
6:17 – Story Time With Aric: Buyer Default. Faulty furnace, and the buyer asks the seller to replace it (a $10,000 expense). Buyer defaults on loan after seller spends $10,000, but only has $5,000 earnest money for remedy. Your agent can protect you from risks like this.
12:40 – Story Time With Jason: Seller Default. Contractor gets a For Sale By Owner (FSBO) under contract. Contractor starts spending money for an extended close. In the meantime, the seller doesn’t want to wait and ends up entering into another contract with another buyer who can close now. Contractor sues for damages and performance.
16:00 – This is NOT Legal Advice.
17:20 – What did we learn today?
19:05 – Bloopers
* No judges were harmed in the making of this video.
Please contact us to tell us you love us, you want to hire us! Call or text:
Realtors with Hive Collective at Presidio Real Estate:
Tyler Cazier: 801-210-0230
Aric Wiszt: 801-228-7687
Lender with Elite Team at Security Home Mortgage:
NMLS: 178787
Jason Christiansen: 801-669-7271
NMLS: 240472
A Production with Security Home Mortgage’s Jason Christiansen, and Hive Collective at Presidio’s Tyler Cazier and “Mr. Suit” Aric Wiszt.