What does active under contract mean when buying a home?

When you sign the contract to purchase a home, you officially become the owner of the property. It doesn’t matter if the sale is contingent on the buyer completing the financing or a home inspection, at that point, you own the property. However, the seller technically still has active interest in the property until the final purchase price is paid in full.

What does it mean to be active under contract in Ohio?

Under current Ohio law, both the buyer and the seller must be personally obligated to complete a purchase. However, the buyer does not have to have a mortgage signed or an earnest money deposit paid. Currently, a signed purchase agreement is not legally binding until all conditions of the agreement are met. In order to achieve this, the buyer must be “actively under contract.”

What does active under contract mean when buying real estate?

When you sign a contract to purchase a property, you have 30 days to get your financing in place. If you don’t get approved or have issues with your credit before the end of the under contract period, you automatically forfeit the contract and any earnest money you paid.

What is active under contract mean when buying a house?

In order to avoid any confusion, a real estate agent or mortgage lender will always spell out the terms of active under contract when discussing a home sale. Under active under contract, this means that the buyer and seller have signed a purchase and sales agreement (also called a purchase contract or purchase agreement). This is a legal contract that outlines the specific terms of the sale, including the price, the financing, and the closing date.

What does it mean to be on active under contract when selling a home?

If the buyer signs an offer to purchase a home under contract, that means they have verbally accepted the seller’s terms and conditions. It doesn’t mean that a deal has been completed – the sale is not final until both the buyer and seller sign the final paperwork.