How to Modify or Remove Contingencies in a Utah FSBO Sale

When you're selling your Utah home as a For-Sale-By-Owner (FSBO), contingencies give you flexibility and protection. But sometimes you need to modify or remove them entirely to make your offer more competitive—or to meet a buyer's request. Here's how to handle contingency modifications in a Utah FSBO sale, including what Utah law says about it.

Photo by Cytonn Photography on Unsplash

What Are Contingencies in a Utah REPC?

The Utah REPC (Residential Purchase Contract) includes standard contingencies:

• Inspection contingency — typically 5–10 days for the buyer to have a professional home inspection
• Appraisal contingency — buyer's financing depends on the home appraising for the sale price
• Financing contingency — buyer's ability to secure a loan
• Title contingency — seller warrants they have clear title
• HOA approval contingency — if applicable

Each contingency has a specific removal deadline. Once a deadline passes, the contingency is either satisfied or waived. Utah law recognizes these deadlines as binding—missing one often waives the contingency automatically.

When Might You Modify a Contingency?

As a Utah FSBO seller, you might face requests to modify contingencies in these situations:

Inspection Period Extension — A buyer may ask for more time to complete their inspection, especially if they're coordinating with specialists (radon, septic, well-water testing). Extending the inspection deadline by 2–3 days is common in Utah markets and keeps a deal alive.

Appraisal Contingency Waiver — In a strong Utah market, cash buyers or well-capitalized buyers sometimes offer to waive the appraisal contingency. This removes the risk that a low appraisal will derail financing.

Financing Terms Adjustment — A buyer might need to modify financing timelines or pre-approval requirements if their lender is delayed.

How to Modify or Remove Contingencies in Utah

1. Use an Addendum to the REPC

Never cross out or modify the original REPC. Instead, use an Addendum to the Residential Purchase Contract—this is the legal way to make changes in Utah real estate transactions.

The addendum should clearly state:

• Which contingency is being modified (be specific)
• The new deadline or removal (if applicable)
• Why it's being modified (optional but helpful)
• Signatures from both seller and buyer

2. Get Agreement in Writing

Utah law requires contingency modifications to be in writing. Email exchanges alone are not sufficient for a binding modification. Use the addendum form or an agreed-upon written document that both you and the buyer sign.

3. Watch the REPC Deadlines

This is critical: Utah's REPC includes automatic waiver language. If a contingency deadline arrives and the contingency is not removed or satisfied, it's often considered waived by default. Before modifying a contingency:

• Know the original deadline
• Confirm you understand how removing it affects your position

4. Document Everything

Keep copies of:

• The original REPC with all contingencies
• Any addendums modifying those contingencies
• Email confirmations of agreement
• Photos or inspection reports if applicable

When Removing a Contingency Works (and When It Doesn't)

Removing contingencies usually helps if:

• You're in a seller's market (Utah has seen strong demand in Salt Lake County, Davis County, and Utah County)
• You have multiple offers and want to attract the strongest one
• You're confident about your home's condition and market value

Removing contingencies can backfire if:

• Your home has known issues that an inspection would reveal
• You're unsure about market value
• The buyer's financing is questionable
• You haven't had a pre-listing inspection yourself

Many Utah FSBO sellers order a pre-listing inspection ($300–600) to identify issues early. This gives you confidence to negotiate contingency modifications without fear.

What About the Title Contingency?

In Utah, title contingencies are non-negotiable. The seller must deliver clear, marketable title—it's not optional. You can't waive your obligation to provide a clean deed. However, you can agree to hire a title company to clear title issues before closing, which is common in Utah real estate.

When to Seek Legal Guidance

Before modifying or removing any contingency, especially as an unrepresented FSBO seller, consider consulting a Utah real estate attorney if:

• The buyer requests unusual contingency modifications
• You're unsure about how a modification affects your legal position
• The modification significantly changes your risk or timeline
• Multiple contingencies are being stacked or modified together

Many Utah real estate attorneys, including myself, offer flat-fee contingency reviews ($150–300) to make sure you're protected.

Utah FSBO Pro Tip

Don't let a buyer pressure you into removing contingencies without real reason. Contingencies exist to protect both parties. A legitimate buyer will understand if you want to keep the standard protections. If a buyer insists on removing all contingencies for no clear reason, that's a red flag.

Ready to get started? Tyler offers a free 15-minute consultation — schedule yours at utahfsbohelp.com/contact.