Seller Financing Addendum vs the REPC Financing Deadline

The REPC's deadlines and the Seller Financing Addendum's deadlines run side by side; neither replaces the other. The REPC still sets due diligence, financing, and settlement dates. The addendum adds its own, including a 10-day rule on an all-inclusive deal. On those deals the due-on-sale clause in the seller's existing loan is the risk behind that rule.

Which REPC deadlines still matter when the seller is the lender?

All of them still matter, because the REPC's dated deadlines do not disappear when the seller carries the note. What changes is who has to act by each date, and what "financing" means when no bank is underwriting the loan.

The Real Estate Purchase Contract is the state-approved form dated September 1, 2017 (Real Estate Purchase Contract (state-approved form, Sept. 1, 2017)). The Seller Financing Addendum, effective October 20, 2021, attaches to it (Seller Financing Addendum (state-approved form, Oct. 20, 2021)). The addendum adds terms. It does not erase the REPC's calendar.

In practice, the REPC deadlines agents watch on a seller-carry deal are these:

• The seller disclosure date. The seller still owes the property disclosures. That doesn't change because the seller is also the lender.
• The due diligence date. The buyer still inspects, reviews title, and checks HOA documents. On a seller-financed deal, the buyer also reviews the proposed note terms in this window.
• The financing and appraisal date. This is the one that gets confusing. There is no bank loan commitment to wait for. The parties need to agree in writing what "financing approval" means here.
• The settlement date. Closing still happens on a date. The note and trust deed have to be drafted, reviewed, and signed by then.

The financing date causes the most trouble. Picture a $425,000 sale with $42,500 down and $382,500 carried by the seller. The buyer isn't waiting on an underwriter. The seller is. If the seller wants to review the buyer's finances first, that review needs its own date. Otherwise the financing deadline arrives with nothing attached to it.

What typically works is simple. Treat the seller's approval of the buyer as the financing condition. Give it a specific date before the REPC financing deadline. Then make sure both parties sign off on that reading.

What does the addendum's 10-day underlying-loan evidence rule add?

It adds a seller deadline that only appears on all-inclusive deals. If an all-inclusive deed of trust is used, the seller must provide evidence within 10 days that underlying payments are current (Seller Financing Addendum § 4).

That is a wraparound. The seller's existing loan stays in place. The buyer pays the seller, and the seller keeps paying the original lender. So the buyer needs proof the existing loan isn't already behind.

The 10-day rule fits inside the REPC calendar, not outside it. Here's how it usually lines up. Say the contract is signed on November 2. The 10-day evidence date lands early, well before most due diligence deadlines. That timing is useful. The buyer sees the underlying loan's status while there is still time to walk away under the REPC.

Read Section 4 of the addendum for exactly when the 10 days start. Then calendar the date the day the contract is signed. Don't count on anyone remembering it.

Good evidence is specific. A recent statement from the lender showing the payment history is the usual choice. A screenshot of a balance isn't the same thing. Ask for something that shows the last several payments posted on time.

This rule only covers whether payments are current. It doesn't address the due-on-sale clause in that loan. That risk stays, and it needs its own plan.

How do the buyer's financial-information deadlines fit?

They fit as the seller's version of underwriting, and they should land before the REPC financing deadline. The seller is about to lend real money. The seller needs time to review the buyer before that money is committed.

The state has a form for this. The Buyer Financial Information Sheet is a state-approved form dated January 1, 1999 (Buyer Financial Information Sheet (Jan. 1, 1999)). It is separate from the addendum. You can find the current state forms through our forms page.

What typically happens on a well-run deal looks like this:

1. The buyer delivers the financial information sheet and supporting documents a few days after signing.
2. The seller reviews it, often with help on what to look for.
3. The seller approves or objects by a written date.
4. That approval date falls before the REPC financing deadline.

Use real numbers to make the point with your seller. On $382,500 carried at 6.75% over 30 years, the payment is $2,480.89 a month. Can this buyer reliably pay that, plus taxes and insurance? The seller should know the answer before the financing date passes.

If the seller skips this step, the deadline still passes. The seller just ends up lending without looking.

How do the deadlines line up on one calendar?

Put every REPC date and every addendum date on one calendar, in order. Two calendars are how a date gets missed. The table below shows a typical sequence; it is practice guidance, and your contract's actual dates control.

Work backward from settlement. The note and trust deed take time to draft and review. On a wrap they take longer, because servicing and insurance have to be set up too. If settlement is 30 days out, the documents need to be in drafting well before the last week.

For the section-by-section mechanics of the form itself, see how to fill out the Utah Seller Financing Addendum.

What happens if a deadline is missed?

The contract's own terms decide what happens, so read them before the date passes. A missed date can shift who may cancel and what happens to earnest money. Don't guess; check the REPC and the addendum, and get help if the answer is unclear.

What typically happens next depends on which date slipped:

• A buyer-side date passes. The buyer may lose a right to object or cancel that depended on it. Earnest money can be at stake.
• The seller's 10-day evidence is late. The buyer is now heading toward due diligence without proof the existing loan is current. That's a reason to pause, not to push forward.
• The seller's approval of the buyer is late. The financing date arrives with no clear answer. Both sides end up arguing about what the condition meant.
• Settlement slips. Documents aren't ready, or the servicer isn't set up. Everyone scrambles.

The fix is almost always the same. Get a signed written extension before the date passes. An email saying "we're fine with a few more days" is not the same as a signed addendum. Use the state-approved addendum to extend, signed by both parties.

Don't rewrite the printed form to change timing. Fill in the blanks and use a signed addendum. Custom timing terms belong in documents an attorney drafts.

How do you manage the due-on-sale risk on an all-inclusive deal?

You manage it with a plan written before closing, not a hope after it. The seller's existing loan likely has a due-on-sale clause. The lender could demand the full balance after the transfer. The 10-day evidence doesn't change that.

Most agents give the due-on-sale disclosure in writing before a binding agreement. That's good practice on any wrap. Name the lender if you know it. State the approximate balance. Explain in one sentence that the lender could call the loan. Have both parties sign and date it. Our article on the agent's due-on-sale disclosure covers it in detail.

Then build in the mitigations. These are practice guidance:

• A third-party servicer. The buyer pays the servicer. The servicer pays the underlying lender first. Both sides can see it happening.
• Reserves. Set aside part of the down payment. On $42,500 down, holding $7,500 covers about three months of a typical underlying payment.
• Insurance. Hazard insurance kept in force, with the parties and the underlying lender named correctly.
• An exit plan. A target date for the buyer to refinance. Write down what happens if the refinance fails.
• Written disclosure in the file. The signed due-on-sale disclosure, kept with the contract.

Each of these has a date too. The servicer needs to be set up before settlement. The reserve amount belongs in the closing figures. Put them on the same calendar as everything else. The agent resources page has more on keeping these deals on track.

What Greg would tell you

"Put every date from the REPC and the addendum on one calendar the day the contract is signed. On a wrap, ask for the underlying loan statement early and read it. If a date is going to slip, get a signed extension before it passes."

Frequently asked questions

Does the REPC financing deadline apply in a seller-financed deal?

Usually yes, the deadline still exists, but its meaning changes when the seller is the lender. Decide in writing what financing approval means for this deal, and put that date on the calendar.

When is the seller's 10-day underlying-loan evidence due?

Within 10 days, when the deal uses an all-inclusive deed of trust. Read Section 4 of the addendum for exactly when the count starts, then calendar it the day the contract is signed.

Is the Buyer Financial Information Sheet required with the addendum?

It is a separate state-approved form, not part of the addendum itself. Many sellers use it to review the buyer before relying on the buyer's promise to pay.

What should I do if a seller-financing deadline is about to be missed?

Act before the date passes, not after. Get a signed written extension, or follow the notice steps the contract itself sets out.

Can an agent rewrite the addendum's deadlines to fit the deal?

No, the boilerplate stays as printed; you fill in the blanks. Custom timing terms belong in attorney-drafted documents or a properly signed addendum.

This site is for general information about Utah law and is not legal advice. Using it does not create an attorney-client relationship. Every transaction is different — talk to an attorney about yours. Attorney advertising.

Related reading · For agents

• 01

  Seller Financing for Utah Real Estate Agents: The Addendum, the UPL Line, and Your Commission

  A Utah agent's guide to seller financing: the state Seller Financing Addendum section by section, the due-on-sale disclosure, where legal drafting starts, and how commission gets paid.
• 02

  The Agent's Written Due-on-Sale Disclosure: What Utah Rule R162-2f-401a Requires

  What a Utah licensee's written due-on-sale disclosure must say, when to deliver it on a wrap or sub-to deal, and how to document it in the file.
• 03

  Due-Diligence and Closing Checklist for a Utah Seller-Financed Deal

  One checklist for Utah agents from signed REPC to recorded trust deed on a seller-financed sale: title, underlying loan, disclosures, recording, and servicing.

Primary sources

• Seller Financing Addendum (state-approved form, Oct. 20, 2021)
• Seller Financing Addendum § 4
• Real Estate Purchase Contract (state-approved form, Sept. 1, 2017)
• Buyer Financial Information Sheet (Jan. 1, 1999)