What is Pending Contract?

What is Under Contract?

A property that has the listing status ‘Under contract’ signifies that the seller has already accepted an offer from a buyer, and it can be classified as either contingent or non-contingent. The first status, contingent status, indicates that before the transaction can be completed, either the buyer, the seller, or both must satisfy the terms of the agreement, or there will be contingencies. The contract may still go through even if the requirements are not fully achieved (i.e., the contingencies are not met), maybe with the parties agreeing on re-negotiated terms. If not, the agreement is likely to collapse, and the property will be put back up for sale. When a property’s state is specified in a contract as non-contingent, that is the second situation. In this case, the buyer agrees to acquire the property at the agreed-upon price and in its existing state, with no special conditions included in their offer....

What is Pending Contract?

Pending contract is a stage of the process where all of the contract’s contingencies—such as those pertaining to inspections, ordering appraisals, and securing financing—have been satisfied or waived. Usually, the pending phase comes before the contract closes. In order to complete the sale, both parties must complete the financing, prepare any necessary supplemental paperwork, and coordinate the transaction with all relevant parties (lenders, escrow agents, and title firms). The likelihood of the transaction falling through is much reduced, although it is still possible (for instance, if the buyer is unable to obtain financing)....

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 “active under contract.” 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. Buyer’s Right 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 seller’s 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 transaction’s completion....

Conclusion

The primary distinction between postings that are under contract and those that are pending is the degree of closeness with which the buyer and seller have completed the transaction. A listing will change to under contract when a deal is originally approved and due diligence has to be finished. The listing will go pending when the deal gets closer to closing. It is advised to get in touch with the agent mentioned for the property if you are unclear about the listing’s status....

Difference Between Under Contract and Pending Contract- FAQs

What is the average length of time a property is under contract?...