What happens if the earnest money is not deposited within the specified timeframe under Utah law?

Within the context of Utah real estate transactions, the timely deposit of earnest money is a critical component of the purchase agreement. If the earnest money is not deposited within the specified timeframe, it can impact the contractual relationship between the buyer and seller.

The correct answer reflects that the seller has the option to cancel the contract if the buyer fails to fulfill this obligation. This is because both parties typically agree to specific terms in the purchase agreement, including when and how much earnest money should be deposited to signify the buyer's serious intention to complete the purchase. If the buyer does not comply with this term, it can be seen as a breach of the contract, thus granting the seller the right to terminate the agreement.

In addition, while some might consider other potential outcomes or penalties, they may not align with the established norms and practices surrounding real estate contracts in Utah. Therefore, the ability of the seller to cancel the contract provides a clear legal pathway to address non-compliance with the earnest money requirement.