Buyer guide

Words buyers hear

These are plain definitions of words you will meet while buying a home in Park City, Deer Valley, or the Wasatch Back. They follow the order of a purchase. The longer explanations are on the other guide pages. This is not legal advice.

In this guide

How to use this list

If a word shows up in a contract, find it here, then read the page that covers that step. Definitions are short on purpose. The contract language is longer, and the signed contract controls.

The offer page is the place for earnest money, deadlines, the inspection, and the appraisal. The closing costs page is the place for charges at the end. The ski-home page is the place for associations, rentals, heat tape, and snow load.

The words

Pre-qualification: An early conversation with a lender about what you might borrow, usually from numbers you report. It is lighter than a pre-approval. Ask which one you have.
Pre-approval: A written letter after a lender reviews your income, savings, and credit. It is useful with an offer. It is not a promise that the loan will close. The pre-approval page explains the limits.
Down payment: The cash you pay toward the purchase price, apart from the loan. It is not the same thing as earnest money, and it is not the same thing as closing costs.
List price: The seller’s asking price. A card on this site shows list price. It is not a sold price, and it is not an appraisal.
MLS: The shared database of listings that brokers use. Public inventory on the listings page comes from that kind of record. Some homes are also shown privately before they are listed.
Offer: Your written proposal to buy a house on stated terms. It is not a purchase until the seller accepts those terms, or you accept the seller’s written changes.
Counteroffer: The seller’s written change to your offer, or your written change to theirs. The changed terms count when both sides have accepted the same version.
Acceptance: The moment both sides have agreed to the same contract. Several clocks, including the earnest-money delivery, start from acceptance. Confirm the time with your advisor.
REPC: The Real Estate Purchase Contract, the standard form used for most Utah home purchases. The making-an-offer page explains earnest money, deadlines, the inspection, and the appraisal. The copy you sign controls.
Earnest money: A deposit that shows you intend to buy. If the sale closes, it is credited toward the price. The contract says when it is returned and when it may not be. On the standard form, delivery is due within four calendar days after acceptance.
Addendum: A page added to the contract that adds or changes terms. It counts when the people who need to sign it have signed it. A verbal promise is not an addendum.
Contingency: A condition in the contract. On the REPC, several buyer protections are boxes. If the box is checked, you may be able to cancel by a deadline. If it is not checked, that protection is not in the contract.
Due diligence: Your time to inspect, read documents, and decide if the house is acceptable to you. If that box is checked, a written cancellation by the deadline is how you use that right. The offer page describes what happens if you miss it.
Seller disclosure: The seller’s written statement of what they know about the property. It is not an inspection. Read it, and still hire the inspectors the house needs.
Inspection: A look at the house by someone you hire and pay. The report is information. It does not force the seller to make repairs. Repairs or credits count when both sides sign them.
Appraisal: A licensed appraiser’s opinion of value, usually ordered for the lender. It is not an inspection. If the appraisal box is checked and the value is below the price, the contract gives a deadline to cancel in writing.
Underwriting: The lender’s final review of you and the house. A pre-approval comes before this review. The loan is not done until underwriting is done and the loan funds.
Rate lock: An agreement with the lender to hold an interest rate for a period of time. It is separate from the pre-approval letter. Ask when it starts and when it ends.
Title: The legal right of ownership. A title company checks the record and, at closing, handles the deed. Clear title means the record is acceptable under the contract.
Title insurance: A policy that covers certain problems with the title. The owner’s policy protects the buyer. The lender’s policy protects the lender. Who pays is in the contract. See the closing costs page.
Escrow: A neutral hold. The title company holds money and documents until closing is finished. Separately, a lender may hold money for insurance and for other bills the loan requires. The closing costs page is where that hold is described.
HOA: A homeowners association, the group that manages shared rules and shared costs. Some addresses have more than one. Read the documents for each. Dues are not estimated here.
CC&Rs: The covenants, conditions, and restrictions. They are the recorded rules for the community. They cover use, design, and often rentals. They bind the house, not only the current owner.
Resale certificate: The association’s packet for a sale. It commonly covers dues, insurance, assessments, and what the association maintains. Read it during due diligence. Who pays for it is in the contract and the association’s rules.
Special assessment: An extra charge from an association, beyond regular dues, often for a repair or a project. Ask whether one is approved or being discussed before you waive due diligence.
Short-term rental: Renting a home for short stays. City or county rules and the association rules can all apply, and the association can be stricter. Confirm both for this address. The ski-home page covers this.
Second home: A home you use yourself that is not your main residence. Lenders decide whether a file is a primary home, a second home, or a rental. Ask the lender which box this house is in.
Heat tape: Electric cable on a roof edge or in a gutter that melts a path through ice. It is also called heat cable. It matters only if it works. A mountain inspection should check it.
Snow load: The weight of snow a roof is built to carry. It depends on the site. A structural engineer judges whether the structure is enough. This site does not publish a pounds figure for it.
Included items: The things the contract says stay with the house. Appliances may stay. Furniture stays only if the contract says so. Ask about furnishings in a ski house before you write.
Settlement: Closing. You sign the papers, the lender funds the loan if there is one, and the deed is recorded. The contract has a settlement deadline. Closing costs are due around that day.
Closing costs: The charges to finish the sale, separate from the price. They include lender charges and title charges, among others. The closing costs page lists the kinds of charges.
Deed: The document that transfers ownership of the real estate. It is recorded with the county. A club membership is not a deed.
Principal and interest: The loan payment itself. Principal pays down what you borrowed. Interest is the cost of borrowing. The payment estimate on the pre-approval page calculates only those two, from numbers you type.

Questions, answered

What is a REPC?

The REPC is Utah’s standard Real Estate Purchase Contract. Most home purchases in the state use it. It covers price, earnest money, deadlines, and the boxes for due diligence, financing, and appraisal. The making-an-offer page explains those parts in plain words.

What is earnest money?

Earnest money is a deposit that shows you intend to buy. It is credited toward the price if the sale closes. The contract says when it is returned. On the standard form, you deliver it within four calendar days after acceptance.

What is due diligence?

Due diligence is your time to inspect the house, read the documents, and decide. If that box is checked, you use the right by canceling in writing, or by resolving a concern in writing, before the deadline. The offer page describes the deadline.

Where are the longer explanations?

First steps, pre-approval, making an offer, closing costs, and the ski-home page are the rest of this guide. The buying page is how the group advises. Listings and the neighborhood hubs are where the houses and the places are described.

Places and the market

Write the group when you want to talk through a house in Park City, Deer Valley, or the Wasatch Back.