Under Contract Real Estate

When it comes to real estate, “under contract” means that a buyer and seller have agreed on the terms of a sale but have not yet closed the deal. The buying process can be a long and complicated one, so it’s important to understand what the term “under contract” means and what it entails.

The under contract phase of a real estate deal typically lasts between 30 and 60 days. During this time, the buyer will complete all the necessary inspections and appraisals, and the seller will address any issues that arise from those inspections. It’s important to note that if any of these issues cannot be resolved, the deal may fall through.

One of the major benefits of being under contract is that the property is taken off of the market. This means that the seller cannot accept any other offers. However, it’s important for the buyer to understand that they still have a few hurdles to cross before the sale is final.

During this time, the buyer’s lending institution will conduct a final underwriting process to make sure that the buyer is able to receive financing for the purchase. If the lending institution finds any issues during this process, the sale can be delayed or even cancelled.

Other factors that could impact the sale during the under contract phase include a change in the buyer’s employment status, a change in the buyer’s financial situation, or a natural disaster that affects the property.

Under contract real estate can be a confusing and stressful process, especially for first-time homebuyers. That’s why it’s important to work with an experienced real estate agent who can guide you through the process and make sure everything is done correctly.

If you’re a seller, it’s important to understand that once you’re under contract, you’re legally obligated to complete the sale. That’s why it’s important to make sure that all of the necessary repairs and inspections have been completed before the buyer signs the contract.

In conclusion, under contract real estate means that a buyer and seller have agreed on the terms of a sale but have not yet closed the deal. During this time, the buyer will complete all necessary inspections and appraisals, and the seller will address any issues that arise. It’s important to work with an experienced real estate agent and understand the legal obligations of being under contract.


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