Utah’s New REPC Section 1.2, 1.3, 1.4.

Utah’s New REPC Section 1.2, 1.3, 1.4. re; Personal Property and Water.

These sections are about included property and water rights that are involved in the transaction. The current / old REPC Section 1.3 is identical in the new REPC, but re-numbered Section 1.4.

These are the actual clauses contained in each form:

Current / Old REPC:

1.2 Excluded Items. The following items are excluded from this sale: ____________________

1.3 Water Rights. The following water rights are included in this sale:________________

There is no Section 1.4 in the Current / Old REPC.

New REPC:

1.2 Other Included Items. The following items that are presently owned and in place on the Property have been left for the convenience of the parties and are also included in this sale (check applicable box): [ ] washers [ ] dryers [ ] refrigerators [ ] water softeners [ ] microwave ovens [ ] other (specify)_____________________The above checked items shall be conveyed to Buyer under separate bill of sale with warranties as to title.

1.3 Excluded Items. The following items are excluded from this sale: _____________________________________

1.4 Water Service. The Purchase Price for the Property shall include all water rights/water shares, if any, that are the legal source for Seller’s current culinary water service and irrigation water service, if any, to the Property. The water rights/water shares will be conveyed or otherwise transferred to Buyer at Closing by applicable deed or legal instruments. The following water rights/water shares, if applicable, are specifically excluded from this sale: ________________________

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Discussion:*

The new section 1.2 delineates personal property that the Commission and others have noted as problem areas or items in past transactions, and this rewrite looks to minimize or avoid disagreements later in the transaction by providing more specificity.

The new section 1.3 is the same as the old Section 1.2 and provides a place to exclude items from the transaction.

In the new Section 1.4, notice the blank line that was formerly available in the old Section 1.3 about water rights has been removed. This new section reflects most residential transactions with regard to water shares and water rights.

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*I’m remarking on the new REPC changes as I see them. I’m not offering legal advice.

Up next…Section 2: Purchase Price.

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