Under Contract
The status of a property when a purchase agreement has been signed by both buyer and seller, but the sale has not yet closed. During this period, the buyer typically conducts inspections, secures financing, and satisfies other contract contingencies. The property is essentially off the market unless the contract falls through.
Example
“The beautiful colonial house went under contract within two days of listing, but the sale won't close for another 30 days.”
Memory Tip
Under contract = UNDER the control of a contract - the property is spoken for but not yet sold.
Why It Matters
Understanding this status helps you gauge market activity and timing, as properties under contract may become available again if deals fall through.
Common Misconception
People often think 'under contract' means the sale is guaranteed, but buyers can still withdraw during the contingency period without penalty for covered reasons.
In Practice
After your offer is accepted on a home, the listing will change from 'active' to 'under contract' while you complete your home inspection, finalize your mortgage, and satisfy other contract conditions over the next 30-45 days. If your inspection reveals major issues you can't negotiate, you might cancel the contract and the home returns to active status.
Etymology
This status term combines 'under' from Old English meaning 'beneath' or 'subject to' with 'contract' from Latin 'contractus' meaning drawn together, indicating the property is bound by agreement.
Common Misspellings
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