Difference between Under Contract and Pending Contract
Basis |
Under Contract |
Pending Contract |
---|---|---|
Meaning |
An offer that has been accepted by the seller is termed as under contract. |
Pending contract is one in which property is covered by a contract, and all conditions have either been met or removed. |
Sale Status |
The property is no longer promoted, it is still accept bids as long as it is listed as âactive under contract.â |
The property is not for sale under pending contracts. |
Contract |
In under contracts, contract is signed by both parties. |
Contractual contingencies have either been met or waived under pending contracts. |
If all requirements are satisfied, the buyer has the contractual right to acquire the property. |
When all requirements are satisfied, the buyer must acquire the property as stipulated in the contract. |
|
Obligation for Both Parties |
Both the parties observe the conditions of the agreement. |
Both the parties get ready for the process of closure. |
Contingencies |
There can be awaiting complications (like finance and inspections). |
Every possibility has been met or rejected. |
Potential Risk |
Buyers or sellers may violate the terms of the agreement by failing to get financing or fulfilling extra requirements. |
There is still a chance of last-minute issues during the last preparations before closing, but the danger is reduced. |
Market Availability |
Property is often not accessible to other prospective purchasers unless otherwise specified. |
The property is not offered to other purchasers. |
Time Period |
Following the sellerâs acceptance of an offer, this phase occurs. |
This phase starts once every eventuality has been handled. |
Progress |
Early phase of the sales cycle. |
Closer to the transactionâs completion. |
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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