When you’re in the market for a new house, there are a lot of terms and phrases that can be confusing. One common term you might come across is “under contract”. But what exactly does that mean?
When a house is under contract, it means that a buyer and seller have already agreed to terms and have signed a contract. This contract outlines the terms of the sale, including the price of the home, the closing date, and any contingencies that must be met before the sale can be finalized.
So, what are these contingencies? They can include things like inspections, appraisals, or the buyer’s ability to secure financing. Basically, they are conditions that must be met in order for the sale to go through.
Once the contract is signed, the house is considered to be under contract until the closing date. During this time, the seller cannot accept any other offers on the property, and the buyer is typically given a certain number of days to finalize their financing and complete any inspections or appraisals.
While the house is under contract, the buyer and seller are legally bound to the terms of the contract. If either party fails to meet their obligations, the contract can be terminated and the sale will not go through.
It’s important to note that just because a house is under contract, it doesn’t mean the sale is final. There are still a number of things that can go wrong during the closing process, so it’s important to be prepared for any potential issues.
In summary, when a house is under contract, it means that a buyer and seller have agreed to terms and signed a contract outlining the details of the sale. While the house is under contract, the seller cannot accept any other offers, and the buyer must meet certain contingencies before the sale can be finalized. It’s important to be aware of the details of the contract and any potential issues that can arise during the closing process.