Understanding the Meaning of 'Under Contract' in Real Estate

In real estate, the term 'under contract' indicates that a buyer has made an offer on a home and the seller has accepted it. This phase means that all necessary paperwork has been completed, and the property is no longer available for purchase by other buyers. However, it’s important to understand that 'under contract' does not mean the sale is final; there are still contingencies that might affect the final transaction. This article explores the implications of being 'under contract' in real estate, including the different types of contracts, the significance of contingencies, and what buyers and sellers can expect during this process. It’s essential for both parties to be aware of their rights and obligations, as well as any timelines that must be adhered to. Additionally, potential buyers should recognize that there may still be opportunities to negotiate or submit backup offers, depending on the status of the original agreement. Read on to dive deeper into the world of real estate contracts and learn everything you need to know about the 'under contract' status.