The current Utah Real Estate Purchase Contract (REPC) is structured to provide the buyer the right to perform various inspections and evaluations within a prescribed time period and then in the buyer's sole discretion, decide whether or not to continue with the transaction. The buyer may choose to cancel, for whatever reason, if proper notice is given by the agreed deadline, and suffer no penalty. Moreover, the buyer is not obligated to divulge or disclose the reason(s) or rationale for the decision to cancel. As a result, the seller, even though there was agreement for the Due Diligence review at the time the contract was formed, is left to speculate the cause for failure and has nothing to work with to prepare to prevent another failure with a subsequent offer or contract.
The following is the actual contract form language dealing with this topic; it is cited here for the reader to have full awareness of the form content:
"BUYER'S CONDITIONS OF PURCHASE.

8.1 DUE DILIGENCE CONDITION. Buyer's obligation to purchase the Property: [ ] IS [ ] IS NOT conditioned upon Buyer's Due Diligence as defined in this Section 8.1 (a) below. This condition is referred to as the "Due Diligence Condition." If checked in the affirmative, Sections 8.1 () through 8.1 (c) apply; otherwise they do not.
(a) Due Diligence Items. Buyer's Due Diligence shall consist of Buyer's review and approval of the contents of the Seller Disclosures referenced in Section 7, and any other tests, evaluations and verifications of the Property deemed necessary or appropriate by Buyer, such as: the physical condition of the Property; the existence of any hazardous substances, environmental issues or geologic conditions; the square footage or acreage of the land and/or improvements; the condition of the roof, walls, and foundation; the condition of the plumbing, electrical, mechanical, heating and air conditioning systems and fixtures; the condition of all appliances; the costs and availability of homeowners' insurance and flood insurance, if applicable; water source, availability and quality; the location of property lines; regulatory use restrictions or violations; fees for services such as HOA dues, municipal services, and utility costs; convicted sex offenders residing in proximity to the Property; and any other matters deemed material to Buyer in making a decision to purchase the Property. Unless otherwise provided in the REPC, all of Buyer's Due Diligence shall be paid for by Buyer and shall be conducted by individuals or entities of Buyer’s choice. Seller agrees to cooperate with Buyer's Due Diligence. Buyer agrees to pay for any damage to the Property resulting from any such inspections or tests during the Due Diligence.
(b) Buyer's Right to Cancel or Resolve Objections. If Buyer determines, in Buyer's sole discretion, that the results of the Due Diligence are unacceptable, Buyer may either: (i) no later than the Due Diligence Deadline referenced in Section 24(b), cancel the REPC by providing written notice to Seller, whereupon the Earnest Money Deposit shall be released to Buyer without the requirement of further written authorization from Seller; or (ii) no later than the Due Diligence Deadline referenced in Section 24(b), resolve in writing with Seller any objections Buyer has arising from Buyer's Due Diligence.
(c) Failure to Cancel or Resolve Objections. If Buyer fails to cancel the REPC or fails to resolve in writing any objections Buyer has arising from Buyer's Due Diligence, as provided in Section 8.1(b), Buyer shall be deemed to have waived the Due Diligence Condition."

As one can see from the reading, the buyer is within his/her/their rights to perform the due diligence and give timely notice of cancellation with no comment or explanation. But it poses difficulty and uncertainty upon the seller without benefit of knowledge or information to be gained from the process. The seller must accept the fact that, except provisions are included and agreed to otherwise, the property shall be off the market for the stipulated period and the seller stands to lose the time of marketing for the period to run, and may result in a cancellation notice and termination of the agreement.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). He was recently awarded NAR's new Green designation. You can contact him by e-mail at Jim@JimColeman4Homes.com. Call: ( 435 ) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.