What Does Under Contract Mean For Massachusetts Buyers and Sellers?
In real estate, the term “under contract” signifies a crucial stage when buying and selling in Massachusetts.
When a property is under contract, a buyer makes an offer, and the seller accepts it. However, the sale has not yet been finalized. I have put significant effort into educating you on the following:
- The exact meaning of “under contract” in real estate.
- The steps involved in moving from “under agreement” to closing.
- The implications of this status for both buyers and sellers.
As a Massachusetts Realtor, buyers and sellers have asked me about listing statuses for the past thirty-eight years. The status of under contract is one of the common ones. It is also referred to as active under contract.
Let’s examine real estate’s essential “under contract” meaning and details.
What Does Under Contract Mean For Massachusetts Buyers and Sellers?
What Does “Under Contract” Mean?
“Under contract” in real estate refers to a property for which a seller has accepted a buyer’s offer. Both parties have signed a purchase agreement, but several steps remain before the sale is complete. This period is critical as it involves inspections, appraisals, and finalizing financing. It also impacts how long it will take to sell a house.
You may also hear a real estate agent call a property “under agreement.” It means the same thing.
When a property goes under contract in Massachusetts, it signals that the seller and buyer have reached an agreement on the terms of the sale, including the purchase price, closing date, and any contingencies. However, the transaction is not legally binding until all conditions are satisfied and the final paperwork is signed at closing.
Steps Involved in the “Under Contract” Phase
1. Offer and Acceptance
- The buyer submits an offer to purchase the property: This offer includes the proposed…