When it comes to the world of real estate, there are a lot of terms and phrases that can be confusing. One of those phrases is „in contract.” But don`t worry – we`re here to break down what „in contract” means in real estate.
„In contract” means that a buyer and seller have come to an agreement on the terms of a sale and have signed a legally binding contract. This contract outlines the purchase price, closing date, contingencies, and any other details of the sale. Once both parties have signed the contract, they are legally obligated to fulfill their end of the agreement.
It`s important to note that „in contract” is not the same as „closed.” A real estate transaction is not complete until the property has officially exchanged hands at the closing table. However, being „in contract” is a crucial step in the process.
For buyers, being „in contract” means that they can feel more confident in moving forward with the purchase of the property. They can start making arrangements for financing, inspections, appraisals, and anything else needed to close the deal.
For sellers, being „in contract” means that they can relax a bit knowing that the sale is moving forward. They can start making arrangements to move out or buy a new property.
It`s important to keep in mind that even though both parties have signed the contract, there are still things that can go wrong. For example, the buyer may not be able to secure financing, or the inspection may reveal significant issues with the property. In these cases, either party may choose to cancel the contract and walk away from the deal.
Overall, „in contract” is an important term in real estate that signifies that a buyer and seller have agreed on the terms of a sale and have signed a legally binding contract. While there are still hurdles to overcome before the deal is officially closed, being „in contract” is a crucial step in the process.