Difference Between Under Contract and Pending Contract
What is the average length of time a property is under contract?
The duration of a propertyâs contractual period may differ depending on the terms and circumstances agreed upon, although it usually lasts for 30 days. This step may take longer if both parties agree, for instance, if the buyer requires more time to get financing or if the seller has to do repairs.
Is it possible for a property to have a contract and still take backup offers?
It is true that even when a property is under contract, the owner may still consider backup bids. If the main contract falls through, interested purchasers might submit an offer to be evaluated as a backup plan.
When purchasing a house, is it possible for the buyer to back out of the agreement?
When a property is under contract, a buyer typically has the option to back out if certain conditions, including those for financing or inspection, arenât met. This could give them the chance to withdraw without going against the terms of the agreement and get their earnest money deposit refunded.
Can an agreed-upon sale fail?
A pending house sale may not go through, even though it is uncommon. This might happen if the present buyer canât get financing or sell their existing property. If a last-minute issue arises that deters the sale, the agreement will be canceled and the home will be relisted.
What is a contingent sale?
A âcontingentâ residence is one that is contractually bound. Contingent refers to the situation when both parties are waiting on the fulfillment of every single criterion stated by the buyer.
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Difference between Under Contract and Pending Contract
The terms âUnder contractâ and âPending contractâ are often used interchangeably, but they represent different stages in the process. Understanding the distinction between the two can be crucial for both buyers and sellers. Under contract indicates that all the conditions of the sale, such as inspections and financing, have been agreed upon and the transaction is moving toward closing while a Pending contract typically refers to a property that has an accepted offer but hasnât closed yet.
Table of Content
- What is Under Contract?
- What is Pending Contract?
- Difference between Under Contract and Pending Contract
- Conclusion
- Difference Between Under Contract and Pending Contract- FAQs
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