Seller financing · Utah · for sellers, buyers & agents
Seller financing in Utah, explained for everyone at the table.
Whether you're the seller carrying the note, the buyer signing it, or the agent keeping the deal clean, Greg Hansen, a Utah real estate attorney, explains how seller-carry notes, wraps, subject-to deals, and contracts for deed work in Utah — risks first.
Free 15-minute call · No obligation · Utah-licensed attorney · Utah County office
Promissory noteSecured by trust deed
Provo, Utah — an example
The buyer has to refinance or sell to pay this. Both sides should plan now for the year that's hard.
- Licensed Utah attorney
- Flat $750 document fee
- Seller-carry, wraps, subject-to & contracts for deed
- For sellers, buyers & agents
- Utah County based, statewide
- Risks explained first
01 Which seat are you in?
Three people sign a seller-financed deal. Start with your seat.
Sellers
You're about to be the bank.
Carrying the note can get a home sold and earn interest for years. It also makes you the lender when something goes wrong.
The seller's guide →Buyers
The bank said no. Here's how to say yes carefully.
Seller financing can get you into a home. Who holds title, what gets recorded, and how you'll refinance decide whether you're protected.
The buyer's guide →Agents
Keep the deal — and your license — clean.
The addendum sets the terms, but someone has to draft the note and deed. Here's where your job ends, where the attorney's starts, and how you get paid.
The agent's guide →
02 Run your numbers
What does your deal actually look like?
Pick the tab that fits the deal and change any number. The payment is the buyer's obligation and the seller's income — the same figure from two seats. If the seller still has a mortgage, watch the exposure panel.
After 84 payments the buyer owes $347,262 in one lump sum. Most buyers plan to refinance to pay it. If they can't, you're the one holding a defaulted note — plan the exit before you sign.
Full calculator with the amortization schedule →This is general information, not legal advice. Confirm with an attorney before you rely on it.
| Payoff due on your loan | $280,000 |
| Less the buyer's down payment | −$45,000 |
| Cash you'd need to find | $235,000 |
|---|---|
| Spread collected so far | $0 |
| Buyer still owes you | $405,000 |
| Your equity inside the note | $125,000 |
The buyer owes you over time, not today. If the lender accelerates, the realistic exits are the buyer refinancing, a sale, or you paying off the loan — plan which one before you sign.
This is general information, not legal advice. Confirm with an attorney before you rely on it.
03 More specific situations
Five situations. Start with yours.
- 01
I own my home free and clear
The cleanest seller-carry there is. The questions are rate, down payment, balloon, and who collects the payments. - 02
I still have a mortgage
A wrap can work. The due-on-sale clause is the first thing to understand, and it doesn't go away. - 03
I'm an agent with a deal on the table
The addendum, your disclosure duty, the drafting line, and how your commission gets paid. - 04
I'm a buyer the bank said no to
Who holds title, what protects you, and how to plan the refinance before the balloon. - 05
I'm an investor doing sub-to or wraps
Paperwork that protects the seller and you — and an honest look at the exposure.
04 The process
How a Utah seller-financed sale works — for all three of you
01
Agree on terms and the addendum
Seller and buyer settle price, down payment, rate, term, balloon, and late fee. The agent writes them into the state Seller Financing Addendum.
What can go wrong: Vague terms become the argument later — for all three of you.
02
Greg drafts the note and deed
A promissory note and a trust deed (or all-inclusive trust deed) written for this deal. The buyer gets a copy to review before signing; the agent gets clear closing instructions.
What can go wrong: An old fill-in-the-blank form that doesn't fit the deal is the most common mistake.
03
Close and record through a title company
The buyer signs the note, the title company closes, and the trust deed is recorded with the county. The agent's commission is paid from the closing.
What can go wrong: An unrecorded document can lose to a later buyer who records first (§ 57-3-103).
04
Payments flow through a servicer
The buyer pays a third-party servicer, which keeps the ledger, pays the seller — and pays the seller's lender first on a wrap. Both sides get statements.
What can go wrong: Payments by app with no ledger means nobody can prove what's current.
05 Free state forms
The documents you need — free.
These are Utah's state-approved forms. They're a starting point, not the whole deal. Here's what each one does and doesn't do.
- 01
Seller Financing Addendum
Does: Puts the seller-financed terms into the REPC and picks the structure: a note and trust deed, or a note and all-inclusive trust deed.Doesn't: Create the note or the trust deed. The form itself warns that brokers aren't qualified to ensure the financing complies with the law. - 02
All Inclusive Trust Deed
Does: Is the state-approved trust deed for a wrap — the security instrument recorded when the seller's existing loan stays in place.Doesn't: Remove the due-on-sale risk on the seller's loan, or set up how the underlying loan gets paid. - 03
All Inclusive Promissory Note Secured by All Inclusive Trust Deed
Does: Is the state-approved promissory note that goes with the All Inclusive Trust Deed — the buyer's promise to pay on a wrap.Doesn't: Replace a servicing arrangement, or protect either side if the underlying loan is called. - 04
Buyer Financial Information Sheet
Does: Gives the seller a standard way to collect the buyer's financial information before agreeing to carry the note.Doesn't: Verify anything. A form the buyer fills out isn't a credit report or proof of income. - 05
Real Estate Purchase Contract (REPC)
Does: Is the standard Utah purchase contract. The Seller Financing Addendum attaches to it.Doesn't: Contain the financing terms by itself. Licensees can't alter its boilerplate — changes go in approved addenda.
All forms, with notes on each → · Not sure how to fill these out? Ask on the free call.
06 Talk to Greg
A posted price. A clear scope.
Sellers hire Greg to draft the documents. Buyers hire him to review what they're signing. Agents send him the deal so the paperwork is done right and the closing goes smoothly.
Flat fee · seller-financing documents
$750
One posted price for the standard package. The first 15-minute call is free.
Informational only; no attorney-client relationship is formed by using this site; results vary. The engagement letter sets the final scope.
Book a Free Call →What's included
- Promissory note drafted for your terms
- Trust deed or all-inclusive trust deed, ready to record
- Review of the Seller Financing Addendum and REPC terms
- Closing-instruction letter to the title company
- Servicer setup letter
- One round of revisions
- 30-minute planning call
What moves to hourly
- Negotiating with the other side's attorney
- Requests for the underlying lender's consent
- Multi-property or entity-structured deals
- Litigation or default work
Closing and recording
Your documents can be closed and recorded through any Utah title company you choose. Rudd & Hawkes Title Insurance Agency, where Greg's office is located, is one option. Closing is a separate service from the flat legal fee, and choosing it is entirely up to you.
07 Articles
New answers, added regularly.
- For buyers
How to Negotiate Seller Financing Terms as a Buyer
How a Utah buyer can negotiate rate, down payment, term, balloon, and prepayment on a seller-financed home, with a worked $350,000 example.Nov 4, 2026 · 10 min read - Seller financing basics
Is Seller Financing Too Risky for Me as the Seller?
A risk-first look at carrying the note on a Utah home sale: what can go wrong, how long getting the house back takes, and who tends to be a good fit.Nov 4, 2026 · 9 min read - For investors
Loan Assumption vs Subject-To in Utah
A formal assumption runs through the lender; a subject-to deal does not. Here is how approval, liability, title, and due-on-sale risk compare in Utah.Nov 3, 2026 · 8 min read
General information about Utah law, not legal advice. RSS feed
08 Questions people ask
Straight answers
Can I sell my house with seller financing if I still have a mortgage in Utah?
Yes, but the due-on-sale clause is the risk you have to plan around. Federal law lets your lender enforce a due-on-sale clause when you transfer the home (12 U.S.C. § 1701j-3(b)(1)). A wrap or all-inclusive trust deed is not on the federal exemption list (12 U.S.C. § 1701j-3(d)). Before you sign, decide how the full balance would get paid if the lender calls it: a buyer refinance, your reserves, or a sale. The selling with a mortgage guide and the wrap spread calculator walk through the numbers.
What happens if the buyer stops paying on a seller-financed house in Utah — how do I foreclose?
With a note and trust deed, you usually foreclose through a trustee's sale without going to court. Only a Utah attorney or a licensed Utah title company can exercise the power of sale (Utah Code § 57-1-21). On an owner-occupied home, you first send a written notice giving at least 30 days to cure (Utah Code § 57-1-24.3). After the notice of default is recorded, the buyer has three months to reinstate (Utah Code § 57-1-31). The sale comes after that, with no redemption afterward (Utah Code § 57-1-28). The foreclosure timeline tool computes the dates.
How do I buy a house in Utah with seller financing if I can't qualify for a mortgage?
Find a seller willing to carry the loan, then document it the way a bank would. Look for listings that mention owner financing or a seller carry, or have your agent ask. The terms go on the state Seller Financing Addendum to the REPC (Seller Financing Addendum (state-approved form, Oct. 20, 2021)). Ask for a lender's title policy, which the addendum offers as an option (Seller Financing Addendum § 8). Ask whether the seller still has a mortgage before you sign. The buyer guide covers each step.
Who holds the title in a seller-financed deal in Utah?
It depends on the instrument: a trust deed gives you title, a contract for deed doesn't. With a note and trust deed, you take the deed at closing and a trust deed secures your debt (Utah Code § 57-1-19). Under a contract for deed, the seller keeps legal title until you finish paying. Either way, record your interest. An unrecorded document can lose to a later good-faith buyer who records first (Utah Code § 57-3-103).
How do I fill out the Utah Seller Financing Addendum to the REPC?
Pick the instrument in Section 1, then fill in the note terms carefully. Section 1 offers a Note and Deed of Trust, or a Note and All-Inclusive Deed of Trust (Seller Financing Addendum § 1). With the all-inclusive option, the seller must show within 10 days that underlying payments are current (Seller Financing Addendum § 4). You also owe a written disclosure of the due-on-sale clause and its consequences (Utah Admin. Code R162-2f-401a(6)(d)). The seller provides an amortization schedule, total interest, and APR (Seller Financing Addendum § 2.1). See how to fill out the addendum.
Can a Utah real estate agent draft the promissory note and trust deed, or is that unauthorized practice of law?
Fill in the state forms, and leave drafting the note and trust deed to a Utah attorney. Licensees can't alter state-form boilerplate and must use approved addenda (Utah Admin. Code R162-2f-401b). The addendum itself warns that brokers aren't qualified to ensure the financing complies with the law (Seller Financing Addendum). Where the unauthorized-practice line falls in a given deal is a question for a Utah attorney. The safe habit is to send the documents to one; see can a Utah agent draft the note and for agents.
Questions? Call or text Greg.
Greg or his team will call or text you back within one business day. Monday–Friday, 9am–5pm Mountain.