Therefore, before entering the terminology, it helps to understand the steps of your standard real estate transaction. There are many reasons why a sale could fail. Sometimes the buyer`s financing is not allowed. In other cases, the inspection may detect an error or defect that the buyer does not wish to accept. Problems may also arise with respect to shingles, assessed values and property tax. No agreement is final until you go to the conclusion, so it is permissible to continue offers of land while a house is under contract. You simply cannot accept a formal one. If you searched for homes using your local multiple list service, you may have found different terms that describe the state of sale of the property. An active list means that the house is on the market and available for purchase. A pending sale is a sale that goes towards the conclusion.
An « under contract » status means that there is an accepted offer for the house, but the sale is still at an early and perhaps precarious stage. Trinise L. Castro has been writing on a wide range of subjects since 1995. Her work has been published in the Healthy Families Rappahannock Area, where her health-related articles are published, and online in Gadling.com where she is a published travel writer. As an experienced real estate author, she has also participated in AchieveRealEstateSolutions.com and SFGate.com. Castro is also a spokesman and entrepreneur. Since sellers rarely accept offers in these circumstances, you would probably trade the option of buying a home available to buy a home that is not currently on the market. After an offer has been accepted by the seller, there is a contract that the buyer and seller must sign. After signing, there is a legally binding agreement between buyer and seller. Each party then receives a copy of the other`s signed contract, either electronically or in the form of a paper copy. This is called contract exchange and the property is now called « contracted. » The most difficult part about understanding the difference between the current sale and the contract is that terminology and importance tend to vary from region to region. How many times have you found an offer, and it checks every box on your list – but list status says it`s « under contract » or « seller »? Crestfallen, you keep moving hoping you`ll find an equally amazing home.