What does active under contract mean when buying a house?

The term active under contract is used to describe a home that is under contract but not yet closed. This allows the buyer to make a final decision on which house they want to purchase as soon as the paperwork is complete. realtors commonly use the term when speaking to potential buyers.

What does active under contract mean when buying a house for cash?

The under-contract status gives you the flexibility to change your mind if the house you’re interested in doesn’t meet your needs. But when paying cash for a house, you have less flexibility when it comes to making a change. Typically, you can’t just walk away and look for another house.

What does it mean to be active under contract

If you sign an offer to purchase a home while you’re still living in your current residence, you are under a pre-qualification or pre-approval agreement. This agreement outlines the terms of the sale and allows the buyer to purchase the property. If the buyer decides to move forward with the purchase once they receive approval, they will need to sign an agreement called an active under contract agreement.

What does it mean to be active under contract when buying a house?

Being under contract is the process of legally binding yourself to purchase a property as of a certain date. When you’re under contract, you have certain rights and responsibilities. One of the most important responsibilities is making payments on the property.

What does it mean to be active under contract on a house?

If you're buying a home using a conventional loan, you'll often be required to be active under contract before you can complete the purchase. This means you'll have to move in during the closing process, typically about a month before the purchase is finalized.