Are you wondering how you know when you are under contract on a house? In this video, we explain the steps and the timeline to go under contract on a house. We also provide answers to common questions like…
- Do I have to sign a contract to buy a home?
- Is the seller legally obligated to the buyer?
- How long does it take to go from under contract to closed when buying a home?
- What terms are laid out in a contract?
- How long does the buyer have for due diligence?
- When can I do a home inspection?
What Does It Mean To Go Under Contract?
Wondering what happens when a house is under contract? Going under contract is a significant step in a real estate transaction, whether you’re buying or selling.
But what does it mean exactly? Is there a difference between pending and going under contract? And is it possible to back out of a transaction that’s under contract?
We’ll answer these questions and more so you can make sure you understand exactly what’s going on with your home purchase or sale.
In real estate, under contract means the home seller has accepted a buyer’s offer, but there are still conditions that need to be met before the property is officially sold.
What Happens When You Are Under Contract?
Depending on the specific contingencies involved, several things might happen once the property is under contract. This includes:
- Home inspection
- Home appraisal
- Buyer securing financing
- Title search
- Sale of buyer’s property
- Final negotiations
What is the Difference Between Pending and Under Contract?
Under contract means contingencies still have to be met before the sale is official. Pending comes after under contract. It means these contingencies have been met and the sale is still processing before it can be officially considered closed.
Does it Mean a House is Sold?
Under contract means a house is on its way to being sold, but isn’t officially sold yet.
Can You Still Show a House If It’s Under Contract?
Yes, a home seller is allowed to keep showing the house even if it’s under contract. However, it isn’t advisable. If a second buyer comes along with a better offer, the seller could keep it as a backup option, but they wouldn’t be able to accept it unless the original deal fell through as a result of a contingency not being met.
Can You Break a Contract After Signing?
Yes, a buyer or seller can technically break a real estate contract after signing it. Either party can back out of the deal if the contract specifies certain situations where it’s acceptable to do so. For example, in the event a particular contingency isn’t met.
If you choose to break the contract without a legally-acceptable reason, then you could face legal and financial consequences. This includes the buyer or seller suing you.
Work With The Best Realtor in Jacksonville to Buy or Sell
This is one of the most common questions for home buyers and sellers. The best way to answer these questions is by consulting with a qualified real estate professional.
Whether you’re looking to buy or sell a home in Jacksonville, Your Home Sold Guaranteed Realty - Phil Aitken Home Team can help. Our experienced realtors have been helping home buyers and sellers in the area for years.
We’ve developed a reputation for helping home buyers find the home of their dreams for the best possible price. And when it comes to home sales, no one can match our speed. In fact, we sell homes four times faster than our competitors.
To learn more about working with our real estate team, call (904) 544-5252 or fill out the form on this page.