Key Takeaways
- Utah is a "caveat emptor" (buyer beware) state, but sellers must disclose known material defects
- The Seller's Property Condition Disclosure is required by Utah law for residential sales
- Sellers must disclose defects that "materially and adversely affect the use and value of the property"
- Methamphetamine contamination disclosure is specifically required by Utah statute
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
Utah Property Disclosures
Utah has specific property disclosure requirements that sellers and licensees must follow.
Utah as a "Caveat Emptor" State
Utah is known as a "caveat emptor" (buyer beware) state, meaning:
| Principle | Application |
|---|---|
| Buyer responsibility | Buyers should inspect and investigate property |
| Seller disclosure required | Sellers must disclose known material defects |
| Agent duties | Agents must disclose known material facts |
Important: While "caveat emptor" applies, Utah still requires disclosure of known defects that would not be discovered by reasonable inspection.
Seller's Property Condition Disclosure
Utah law requires sellers to provide a Property Condition Disclosure (PCD) to buyers:
Disclosure Requirements
| Requirement | Description |
|---|---|
| When required | For residential real estate sales |
| What it covers | Known condition of property systems and features |
| Legal status | Required by Utah law |
| Nature | Statement of seller's knowledge, not a warranty |
What Must Be Disclosed
Utah requires disclosure of facts that:
- Materially and adversely affect the use and value of the property
- Would not be discovered by a reasonable inspection by an ordinary prudent buyer
| Category | Examples |
|---|---|
| Structural | Foundation issues, roof condition, structural damage |
| Systems | Plumbing, electrical, HVAC problems |
| Environmental | Mold, flooding history, contamination |
| Legal | Zoning violations, easements, liens |
| Mechanical | Non-functioning appliances, equipment issues |
Latent vs. Patent Defects
| Defect Type | Description | Disclosure Required? |
|---|---|---|
| Patent defect | Visible/obvious upon inspection | Buyer should discover |
| Latent defect | Hidden, not discoverable by inspection | Yes, if known by seller |
Key Point: Utah obligates sellers to disclose not only easily seen material defects but also latent defects known by the owner at the time of sale.
Specific Disclosure Requirements
Methamphetamine Contamination
Utah statute specifically requires disclosure of methamphetamine contamination:
| Requirement | Details |
|---|---|
| What to disclose | Any knowledge of use, storage, or manufacture of methamphetamines |
| When | Prior to sale |
| Why | Contamination requires costly remediation |
Important: This is the only disclosure explicitly required by Utah statutory law. Decontamination must meet state standards.
Lead-Based Paint (Federal Requirement)
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Note: Lead-based paint disclosure is REQUIRED by federal law regardless of Utah state law.
Stigmatized Property in Utah
Utah law provides specific protections regarding stigmatized property:
What Sellers Do NOT Have to Disclose
Under Utah Code Section 57-1-37, sellers need not disclose that the property:
| Not Required | Examples |
|---|---|
| Deaths | Homicide, suicide occurred on property |
| Decontaminated meth lab | After proper remediation |
| Occupant with disease | AIDS or other diseases that cannot be transferred by occupancy |
| "Stigmatized" reputation | Alleged paranormal activity, notoriety |
Exception: Direct Questions
If a buyer directly asks about stigmatized property issues:
- Seller/agent cannot lie
- May explain they choose not to answer per Utah statute
- Must be truthful if they do respond
Example: If asked "Was there a death in this house?" the seller can decline to answer citing Utah Code Section 57-1-37, but cannot provide false information.
Consequences of Non-Disclosure
Failure to properly disclose can result in:
| Consequence | Description |
|---|---|
| Fraudulent concealment | Civil liability for hiding known defects |
| Fraudulent nondisclosure | Liability for failing to disclose material facts |
| Lawsuits | Approximately 77% of real estate lawsuits relate to disclosure issues |
| Disciplinary action | UDRE penalties for licensees |
| Contract rescission | Buyer may be able to void the contract |
What disclosure is specifically required by Utah statute?
Under Utah law, what must a seller disclose to a buyer?
If a buyer asks a Utah seller directly whether someone died in the house, what should the seller do?
Which of the following MUST be disclosed under federal law for Utah homes built before 1978?