Is Contingent the Same as under Contract

When it comes to real estate contracts, there are a variety of terms that are used to describe the status of a property sale. Two of the most commonly used terms are “contingent” and “under contract.” Many people use these terms interchangeably, but there are subtle differences between the two.

In general, the term “under contract” means that there is a legally binding agreement between the buyer and seller of a property. This agreement outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies that must be met before the sale can be completed.

A contingent sale, on the other hand, means that there are certain conditions that must be met before the sale can be finalized. These conditions are typically outlined in the purchase agreement and must be met within a specified timeframe. Typical contingencies might include a home inspection, a mortgage approval, or the sale of the buyer`s current home.

So, is contingent the same as under contract? Not exactly. While properties that are under contract are also typically contingent, the reverse is not always true. A property may be contingent without being under contract if a buyer has made an offer that includes contingencies, but the seller has not yet accepted the offer.

It`s worth noting that the exact definitions of these terms can vary depending on the state or jurisdiction where the sale is taking place. Some states use different terminology altogether, so it`s always a good idea to consult with a local real estate professional if you`re unsure about the status of a particular sale.

In any case, whether a property is contingent or under contract, it`s important for both buyers and sellers to understand the terms of the agreement and the contingencies that must be met before the sale can be completed. By doing so, they can avoid misunderstandings and ensure a smooth, successful transaction.

14 april 2023

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