To close a for-sale-by-owner (FSBO) home in Utah, sellers must hire a title company to handle escrow and closing, complete required state disclosures, negotiate and execute a purchase agreement, and coordinate with the buyer's lender if applicable. The FSBO closing process takes 7–60 days from accepted offer to closing day. Cash transactions close in less than 72 hours. Utah FSBO sellers typically save 2.5–3% in listing agent commissions—$10,000 to $15,000 on a $400,000 home.
What You'll Need for a FSBO Closing in Utah
Before listing your home for sale by owner, gather these essential items to ensure a smooth closing process.
Required documents:
- Property deed (your proof of ownership)
- Mortgage payoff statement (if applicable)
- Property survey (if available)
- HOA documents and contact information
- Home warranty information (if transferable)
- Records of major repairs and improvements
- Utility bills (for buyer estimates)
- Property tax statements
Required disclosures (Utah law):
- Seller's Property Condition Disclosure
- Lead-Based Paint Disclosure (homes built before 1978)
- HOA disclosure documents (if applicable)
You'll also need:
- A Utah Real Estate Purchase Contract (REPC)
- A title company to handle escrow and closing
- A method for accepting earnest money deposits
Critical Point
Step-by-Step FSBO Closing Process in Utah
Step 1: Receive and Evaluate Offers
When a buyer submits an offer, review it carefully. Key elements to evaluate:
- Offer price — Is it at, above, or below your asking price?
- Earnest money deposit — Typically 1–3% of purchase price demonstrates buyer commitment
- Contingencies — Financing, inspection, and appraisal contingencies affect deal certainty
- Closing timeline — Standard is 7–60 days; cash transactions close in less than 72 hours
- Buyer's agent commission — If the buyer has an agent, you'll likely pay their 2–3% commission
You can accept, reject, or counter any offer. Get all negotiations in writing.
Step 2: Execute the Purchase Agreement
Once you agree on terms, both parties sign the Utah Real Estate Purchase Contract (REPC). This legally binding document includes:
- Purchase price and payment terms
- Earnest money amount and holder
- Property address and legal description
- Contingency deadlines
- Closing date
- What's included (appliances, fixtures)
- Responsibilities for closing costs
FSBO Tip
Step 3: Open Escrow with a Title Company
Within 1–3 days of signing the purchase agreement, contact a title company to open escrow. The title company will:
- Hold the buyer's earnest money in a neutral escrow account
- Order and conduct the title search
- Identify any liens, judgments, or encumbrances on your property
- Prepare the title commitment
- Coordinate with the buyer's lender (if applicable)
- Prepare all closing documents
- Conduct the closing
- Record the deed with the county
- Disburse funds to all parties
Why you need a title company: Utah law requires a neutral third party to handle real estate closings. Title companies ensure funds and documents are properly exchanged, protecting both buyer and seller.
Step 4: Complete Required Disclosures
Utah law requires sellers to disclose known material defects. Complete these disclosures promptly after accepting an offer:
Seller's Property Condition Disclosure: This form covers the condition of your home's major systems and components, including:
- Structural issues
- Roof condition and age
- HVAC systems
- Plumbing and electrical
- Water damage or flooding history
- Pest infestations
- Environmental hazards
- Neighborhood nuisances
Lead-Based Paint Disclosure (if built before 1978): Federal law requires you to:
- Disclose known lead-based paint hazards
- Provide the EPA pamphlet "Protect Your Family From Lead in Your Home"
- Give buyers 10 days to conduct a lead inspection (they can waive this)
Warning
Step 5: Coordinate the Home Inspection
Buyers typically hire a home inspector within 7–14 days of the accepted offer. As a FSBO seller:
- Make your home accessible for the inspection
- Ensure all utilities are on
- Provide access to the attic, crawl space, garage, and all rooms
- Be prepared for the inspection report
After the inspection, buyers may accept the property as-is, request repairs, request a price reduction, or cancel the contract (if within the inspection contingency period).
Negotiate repair requests in writing. You're not obligated to make every requested repair—this is a negotiation.
Step 6: Facilitate the Appraisal (If Buyer Is Financing)
If the buyer is getting a mortgage, their lender will order an appraisal. The appraiser determines whether the home's value supports the loan amount.
If the appraisal comes in at or above the purchase price: The transaction proceeds normally.
If the appraisal comes in low: You have options:
- Lower the purchase price to match the appraisal
- Have the buyer make up the difference in cash
- Challenge the appraisal with comparable sales data
- Cancel the contract (if the buyer has an appraisal contingency)
Step 7: Clear Title Issues
Your title company will notify you of any title issues discovered during the search. Common issues include:
- Outstanding liens — Must be paid at closing from your proceeds
- Judgment liens — Court judgments attached to the property
- Tax liens — Unpaid property taxes
- HOA liens — Unpaid assessments
- Boundary issues — May require a survey or quiet title action
Most issues can be resolved before closing. The title company will list items that must be cleared.
Step 8: Review and Sign Closing Documents
A few days before closing, you'll receive the settlement statement showing all costs and proceeds. Review carefully:
- Verify the sales price
- Check all prorations (property taxes, HOA dues)
- Confirm your mortgage payoff amount
- Review all closing costs
- Calculate your net proceeds
At closing, you'll sign:
- The deed (transferring ownership to the buyer)
- Settlement statement
- Affidavit of title
- 1099-S tax form (reporting the sale)
- Bill of sale (for personal property included)
Step 9: Attend Closing and Hand Over Keys
On closing day, you'll meet at the title company to sign final documents. Bring:
- Valid government-issued photo ID
- All house keys, garage remotes, and gate codes
- Any warranties or manuals you're leaving
- Forwarding address for mail and final bills
After both parties sign and funds are verified, the title company will disburse your proceeds, record the deed with the county, and provide copies of all documents.
Common FSBO Closing Mistakes to Avoid
Mistake 1: Skipping the title company
Some FSBO sellers try to handle closing themselves to save money. This creates massive legal and financial risk. Title companies charge a fraction of potential losses from improper document preparation or fund handling.
Mistake 2: Using outdated or generic contracts
Don't download random purchase agreements from the internet. Use the standard Utah REPC form—it's designed for Utah transactions and covers required legal elements.
Mistake 3: Incomplete disclosures
Failing to disclose known defects can result in lawsuits years after closing. Disclose everything you know, even if it seems minor.
Mistake 4: Ignoring deadlines
Purchase agreements have specific deadlines for inspections, appraisals, and contingencies. Missing deadlines can void the contract or cost you leverage in negotiations.
Mistake 5: Accepting personal checks for earnest money
Always have earnest money deposited with the title company. Personal checks can bounce, and you have no protection.
FSBO Closing Costs for Utah Sellers
Even without a listing agent commission, FSBO sellers have closing costs. Budget for these expenses:
| Cost | Typical Amount |
|---|---|
| Title insurance (owner's policy) | $1,000–$2,000 |
| Escrow/closing fees | $400–$800 |
| Recording fees | $50–$150 |
| Property tax proration | Varies |
| HOA proration | Varies |
| Buyer's agent commission | 2–3% of sale price |
| Mortgage payoff | Your loan balance |
| Wire transfer fee | $25–$50 |
Total FSBO closing costs: 1–3% of sale price (plus buyer's agent commission if applicable)
Your savings vs. traditional sale: By not paying a listing agent, you save 2.5–3% of the sale price. On a $400,000 home, that's $10,000–$12,000.
Frequently Asked Questions
Yes, Utah requires a neutral third party to handle real estate closings. A title company manages escrow, conducts the title search, prepares closing documents, and ensures funds and documents are properly exchanged—protecting both buyer and seller. You cannot legally close a Utah real estate transaction without a title company or licensed escrow agent.
Key Takeaways
- 1You need a title company — Utah law requires a neutral third party to handle FSBO closings
- 2Use the standard Utah REPC — The same contract form agents use protects both parties
- 3Complete all disclosures — Failure to disclose known defects creates legal liability
- 4Budget for closing costs — Expect 1–3% of sale price, plus buyer's agent commission
- 5FSBO savings — You'll save 2.5–3% ($10,000–$15,000 on a $400K home) by not paying a listing agent
Close Your Utah FSBO Sale with Confidence
Prospect Title Insurance Agency has helped Utah FSBO sellers close transactions since 1967. Our team handles escrow, title search, document preparation, and closing—so you can focus on selling your home.
Get a Free FSBO Consultation