If you are in the process of buying or selling a property, you may come across the term “contract pending.” This term is also sometimes referred to as “under contract” or “in escrow.” It essentially means that an agreement has been reached between the buyer and seller, and both parties are now working towards finalizing the sale.
When a property is listed for sale, interested buyers may submit an offer to the seller. If the seller accepts the offer, they will sign a contract with the buyer outlining the terms of the sale. This includes the purchase price, contingencies (such as inspections or financing), and the closing date. Once the contract has been signed by both parties, the property is considered to be “under contract” or “in escrow.”
At this point, the buyer will typically have a specified amount of time (usually 30-45 days) to complete any necessary inspections, obtain financing, and perform due diligence on the property. During this time, the property will be marked as “contract pending” on real estate websites and listings.
If everything goes smoothly and all contingencies are met, the sale will proceed to closing. At closing, the buyer will provide the funds for the purchase and take possession of the property. The property listing will then be marked as “sold.”
However, it’s important to note that there are some situations in which a contract may fall through. For example, if the buyer is unable to secure financing or if they find significant issues during the inspection process, they may choose to back out of the sale. In these cases, the property will return to the market and the “contract pending” status will be removed.
In summary, “contract pending” means that a property is in the process of being sold and an agreement has been reached between the buyer and seller. While there is still some work to be done before the sale is finalized, it’s a positive sign that the transaction is moving forward. As a buyer or seller, it’s important to understand what this term means and to work closely with your real estate agent or attorney throughout the process.