In real estate law, the phrase “under contract” refers to an offer that has been accepted by both parties and is set to close. Here’s how it happens!
When a home is under contract, it means that an offer has been accepted by the seller and the buyer is now obligated to follow through with the purchase. The transaction is not yet complete, but both parties are committed to working towards closing. This is the earliest stage of finalizing a real estate deal. When a home is under contract, it is still technically available for purchase, but backup offers are generally not accepted by the seller. An escrow account is usually opened at this time and a deposit is typically made by the buyer.
Pending, on the other hand, means that the transaction is in the process of being completed and all that’s left is the final paperwork. In most cases, a home will be pending for a few days before it closes and officially changes hands. A property listed as “pending” is no longer available for purchase. The real estate contract is a legally binding agreement between the buyer and seller that outlines the terms of the sale. This includes the purchase price, closing date, any contingencies, and more. Once both parties have signed the contract, they are obligated to follow through with the sale. If the buyer backs out for any reason, they may be required to forfeit their deposit. Similarly, if the seller backs out, they may be required to pay damages to the buyer.
The typical timeframe for a real estate transaction is 30-60 days, but this can vary depending on the situation. For example, if there are any contingencies in place (such as the buyer needing to sell their current home first), it may take longer to close. In a hot real estate market, homes may go under contract and close within a few weeks. In a slower market, it may take a month or two.
Once a home is under contract, the buyer and seller will work with their real estate agents and attorneys to complete the transaction. The buyer will need to obtain financing (if they are not paying in cash), and the seller will need to prepare all the necessary paperwork. A closing date will be set, and on that date, the transaction will be finalized and the home will officially change hands. So, if you’re in the process of buying or selling a home, understanding what “under contract” means is crucial. It’s the first step in finalizing a real estate deal, and it sets the stage for a successful transaction.
Generally speaking, no. Once a home is under contract, the seller is not legally allowed to accept another offer. Doing so would breach the real estate contract and could result in legal action from the buyer. However, there are some exceptions to this rule. For example, if the buyer fails to obtain financing or misses a contingency deadline, the seller may be able to accept another offer. If you’re selling your home, it’s important to understand your legal obligations once an offer is accepted. Once the home is under contract, you are not legally allowed to accept another offer unless there is a valid reason for doing so. Also, be sure to communicate with your real estate agent throughout the process so they can help you navigate any potential challenges. Thanks for reading!
A contingent sale is a real estate transaction that is contingent upon certain conditions being met before the sale can be finalized. The most common type of contingency is a financing contingency, which means that the sale is contingent upon the buyer obtaining financing. Other common contingencies include inspections, appraisals, and home sales. Contingencies are typically included in real estate contracts to protect both the buyer and the seller. For example, if a buyer is obtaining a mortgage to purchase a home, the financing contingency protects the buyer in case they are unable to obtain financing. Similarly, if a seller is selling their home contingent upon the purchase of another home, the home sale contingency protects the seller in case there are any delays in the sale of their home. If you’re buying or selling a home, it’s important to understand what contingencies are and how they can affect the transaction. Contingencies can protect both buyers and sellers, but they can also delay the closing of a real estate deal. Be sure to discuss any contingencies with your real estate agent so you can be prepared for any potential challenges.
A 10-day contingency is a real estate contract clause that allows the buyer to cancel the contract if certain conditions are not met within 10 days. The most common type of 10-day contingency is a financing contingency, which allows the buyer to cancel the contract if they are unable to obtain financing. Other common contingencies include inspections, appraisals, and home sales. 10-day contingencies are typically included in real estate contracts to protect the buyer. For example, if a buyer is obtaining a mortgage to purchase a home, the financing contingency protects the buyer in case they are unable to obtain financing. If you’re buying a home, it’s important to understand what a 10-day counting is and how it can affect the transaction. 10-day contingencies can protect buyers, but they can also delay the closing of a real estate deal. Be sure to discuss any 10-day contingencies with your real estate agent so you can be prepared for any potential challenges.
Closings fall through in real estate transactions for a variety of reasons. The most common reason is that the buyer or seller fails to meet a contingency deadline. Other common reasons include failed inspections, financing issues, and title problems. It’s important to note that not all closings fall through; in fact, the majority of real estate transactions go smoothly. However, it’s still important to be prepared for the possibility that a closing may fall through. If you’re buying or selling a home, be sure to discuss any potential risks with your real estate agent.
When you’re buying or selling a home, it’s important to understand the legal process. One term you might hear is “under contract.” This means that an offer has been accepted by both parties and the transaction will close. Once a home is under contract, you are not legally allowed to accept another offer unless there is a contingency in place that allows for it. Contingencies are typically included in real estate contracts to protect both the buyer and the seller. If you’re buying or selling a home, be sure to discuss any contingencies with your real estate agent so you can be prepared for any potential challenges.
Cash for Houses© can definitely help you out! We have years of experience in helping homeowners sell their homes quickly and efficiently. We buy houses for cash as-is with no closing costs, so you don’t have to worry about any of the hassle or stress of the traditional way to sell a house anymore. We can make you a fair offer on your home, and we can close the deal in as little as 7 days! So if you’re looking for a fast and easy way to sell your house, then give us a call at (805) 870-9802 today! You can also visit us at Cash for Houses©, or simply fill out the form below to get a fair all-cash offer on your property.
