What does active under contract mean in the real estate world?

If you’re buying a home under contract it means you’ve signed an agreement to purchase the property. The seller may allow you to place a down payment and take over the payments on the loan as long as they don’t change. Depending on the length of the contract, you may be required to complete certain activities before you can officially close on the property.

What do active under contract mean in real estate?

If a property is under contract it means that a buyer has placed a legally binding offer on the property. The under contract status continues until the buyer either accepts the offer or decides to back out.

What does active under contract mean in a listing?

If a property is under contract, then the seller has accepted a buyer’s offer, but the sale has not yet closed. If the deal falls through for any reason, the owner has the option to place the property back on the market with a reduced price.

What does it mean when a home is active under contract?

If a property is under contract then it means that the buyer and the seller have both accepted the offer made by the real estate agent that they hired. The offer will state the terms of the agreement including the price, financing, and other conditions. Both parties can make changes to the offer, and when they do, the agent will have to renegotiate the price.

What does active under contract mean in real estate agents?

Under contract agents are required to be paid a commission if a sale is made while they represent a buyer or seller. If the seller agrees to a lease-back option with the buyer, the commission is usually deferred for a period of time, usually up to one year.