The process of purchasing a property has different stages. One of them is the “Under Contract” stage. This is the stage that usually comes after the initial property visit but before all house inspections. Let’s find out more about the “Under Contract” stage and what it means for both buyers and sellers.
“Under Contract” means that the seller and the buyer have an agreement, which affirms the current buyer’s status as a primary buyer, and grants legal access to inspect the property. During this time the seller acknowledges primary buyer status but may still take backup offers just in case the current deal falls through.
For the seller, the “Under Contract” period carries some risk of the buyer withdrawing, but it also advances the deal to the next stage and brings the seller one step closer to a finalized sale.
This stage is protected by contingencies. This means that if certain conditions are not met – such as a passing inspection or loan approval – the contract can be cancelled and the deposit returned.
After the “Under Contract” stage has finished and all contingencies have been met, the deal moves on to the next stage, called “Pending”, where the final paperwork is completed.