What Does Under Contract Mean When Buying a Home? | Legal Guide

What Does Under Contract Mean When Buying a Home

Buying a home is an exciting and often process. One of the key terms you`ll encounter when purchasing a home is “under contract.” Understanding what this means can help you navigate the home buying process with confidence.

Under Contract

When a home is for sale, buyers have the to make an on the property. Once the seller accepts an offer from a buyer, the home is considered to be “under contract.” This means that the parties involved, including the buyer and seller, have agreed to the terms of the sale, and the property is no longer actively marketed for sale.

Defining Under Contract

Being under contract is a crucial stage in the home buying process. That the buyer and seller have reached on the purchase price, date, and any. This stage also gives the buyer an opportunity to conduct inspections, finalize their financing, and prepare for the closing of the sale.

Considerations

When a home is under contract, the seller is legally obligated to sell the property to the buyer according to the terms of the contract. The buyer is to purchase the property, to the of the contract. It`s important for both parties to carefully review the terms of the contract and seek legal advice if necessary.

Studies

According to the National Association of Realtors, 63% of homes sold in 2020 were under contract within the first month of being listed. This demonstrates the speed at which homes can go under contract in a competitive real estate market.

of Under Contract

Year Percentage of Homes Under Contract within One Month
2018 57%
2019 61%
2020 63%

Understanding what it means for a home to be under contract is essential for anyone navigating the home buying process. It signifies a significant milestone in the sale and provides both the buyer and seller with the framework for completing the transaction. Important to consider the Defining Under Contract and professional when necessary.

Copyright © All reserved.

 

Understanding “Under Contract” When Buying a Home

When into a real estate to purchase a home, to understand the meaning and of being “under contract.” legal outlines the and of the involved in a real estate contract.

Terms

This (“Agreement”) is into on this ____ day of ____________, 20___, by and between the and the collectively referred to as the “Parties”. In consideration of the mutual covenants contained herein and intending to be legally bound hereby, the Parties agree as follows:

Term Definition
Under Contract Refers to the period during which the buyer and seller have signed a purchase agreement, and the property is taken off the market. This time, the conducts diligence and financing while the from entertaining offers.
Contingencies that must be for the sale to such as a home inspection, financing, or an existing property.
Performance parties are obligated to their duties as in the purchase including disclosures, earnest deposits, and to the for contingencies.
Legal Compliance The must to all state and laws, disclosures, requirements, and transfer taxes.

In the of a breach of contract, the party may legal including performance, damages, or of the contract. Is for all parties to legal to fully their and under a real estate contract.

 

10 Legal about Understanding “Under Contract” When Buying a Home

Question Answer
1. What mean to be Understanding “Under Contract” When Buying a Home? Being Understanding “Under Contract” When Buying a Home that the buyer and have to the sale, and parties are bound to their as in the contract. Like the with a stamp of approval!
2. Can a seller back out of a contract once the home is under contract? Well, it depends on the specific terms of the contract. General, if the breaches the without a legal, the may have right to legal or compensation for the. Why it`s to have a contract in place!
3. What happens if the buyer backs out of a contract when the home is under contract? If the buyer decides to back out of the contract without a valid legal reason, they may risk losing their earnest money deposit. Seller could pursue action for of contract. A tough to in, so it`s to all the before making a decision.
4. Can a seller accept another offer while the home is under contract with a different buyer? Technically, a seller can`t accept another offer while under contract with a buyer, unless the contract allows for such a contingency. So could the in legal and in a of contract. All about the made in the agreement!
5. What are the legal implications of being “under contract” in a home purchase? When a home is under contract, both the buyer and seller are bound by the terms of the contract. Violations or of the could to consequences, so it`s for both to their and to the terms. It`s like a legal dance, with each party following the steps!
6. Can a buyer still look at other homes when they are under contract for a specific property? Legally a can still at other while under contract for a property. It`s to note that if the to another property, they be to their money deposit for the property. Like your open, but with consequences!
7. How long does a contract typically last when a home is under contract? The of a contract when a home is under contract can depending on the terms by the and. Common for to a for the of inspections, approval, and after which the is. Like a with built-in milestones!
8. What are some common reasons for a contract to fall through when buying a home? Contracts for home can through for reasons, as issues, uncovered during inspections, or over repairs. A that with a in place, the isn`t in until all are and the closing takes place. Like a obstacle course!
9. Can a buyer or seller make changes to the contract once the home is under contract? Any to the after it`s by both would require agreement and amendments to the contract. To any changes with to that both are in and that the are valid. Like a puzzle!
10. What and keep in when entering into a for a home purchase? Buyers and should review and all the and of the before signing. Also to legal or to that their are and that the is sound. Like a safety to the of the real estate transaction!