As a real estate professional, understanding the difference between “Active Under Contract” and “under contract” is crucial to effectively navigate the complexities of the housing market. In this comprehensive guide, we will delve into the nuances of both statuses, explore their implications, and provide insights to help you make informed decisions.
When a property is listed as “active under contract,” it means that the seller has accepted an offer from a buyer, but certain conditions or contingencies have yet to be fulfilled. These conditions could include the buyer securing financing, conducting inspections, or obtaining legal approvals.
For sellers, having their property listed as “active under contract” indicates that there is a potential deal in place, but it is not finalized. This status allows the seller to continue marketing the property and accept backup offers in case the current deal falls through.
Once all the conditions and contingencies outlined in the contract are met, the status of the property is changed to “under contract.” At this point, the deal is considered firm, and the property is no longer actively marketed for sale.
For buyers, having a property listed as “under contract” signifies that the deal is in its final stages, and barring any unforeseen complications, the purchase will be completed. This status also signals to other potential buyers that the property is no longer available for offers.
To further illustrate the differences between the two statuses, let`s take a look at the following table:
| Status | Availability Offers | Deal Finality | Implications Sellers | Implications Buyers |
|---|---|---|---|---|
| Active Under Contract | Can accept backup offers | Deal not finalized | Continued marketing potential | Potential for deal to fall through |
| Under Contract | Not available offers | Deal considered firm | Property off market | Assurance of deal completion |
To provide a real-world perspective, let`s consider a case study involving a property listed as “active under contract” and another listed as “under contract.”
Property A was listed as “active under contract” and received a backup offer when the initial deal fell through. Ultimately, the backup offer resulted in a successful sale, and the seller was able to secure a higher price.
Property B, on the other hand, was listed as “under contract” and faced no further offers. The deal proceeded smoothly, and the property was successfully sold.
This case study demonstrates the potential benefits of having a property listed as “active under contract,” as it allows for the opportunity to secure backup offers and potentially achieve a better outcome for the seller.
Understanding the distinctions between “active under contract” and “under contract” is essential for all parties involved in real estate transactions. Whether you are a seller, buyer, or real estate professional, being well-versed in these statuses will enable you to make informed decisions and navigate the market with confidence.
For further inquiries or assistance with real estate transactions, feel free to contact our team of experts. We are dedicated to providing unparalleled guidance and support to ensure your success in the housing market.
| Question | Answer |
|---|---|
| 1. What is the difference between “active under contract” and “under contract”? | Active under contract means the property is still available for showings and offers, while under contract means the seller has accepted an offer but the sale has not yet closed. |
| 2. Can a property be listed as “active under contract”? | Yes, it can! It may seem contradictory, but it means the seller is still accepting backup offers in case the current one falls through. |
| 3. Is a property still available for showings if it`s under contract? | Not typically. Once a property is under contract, showings are usually put on hold until the current deal is finalized. |
| 4. Can I make an offer on a property that is “active under contract”? | Absolutely! The seller can still entertain backup offers in case the current one doesn`t go through. |
| 5. What does “active under contract” mean for a buyer? | It means there`s still a chance to swoop in and make a better offer in case the current deal falls through. It`s like being on standby at the airport! |
| 6. What are the implications of a property being listed as “active under contract” for the seller? | The seller gets to keep their options open and potentially secure a better deal if the current one doesn`t work out. It`s like having a safety net! |
| 7. Can a property be under contract with multiple buyers at the same time? | No, once the seller accepts an offer, the property is typically taken off the market to avoid confusion and potential legal issues. |
| 8. How long does a property stay “active under contract”? | It depends on the terms of the contract and the contingencies involved. It could be anywhere from a few weeks to a couple of months. |
| 9. Can a seller still consider other offers while a property is “active under contract”? | Technically, yes. But it`s usually in the seller`s best interest to focus on closing the current deal rather than entertaining new offers. |
| 10. What happens if a property goes from “active under contract” back to “active” status? | It means the current deal fell through and the property is once again available for showings and offers. It`s like hitting the reset button! |
Introduction:
When it comes to real estate transactions, the terms “active under contract” and “under contract” are often used interchangeably, but they have distinct legal implications. This contract aims to define and clarify the differences between the two terms and establish the rights and obligations of the parties involved in a real estate transaction.
| Contract No: 12345 |
|---|
|
THIS AGREEMENT is made and entered into as of [insert date], by and between the Seller and the Buyer, collectively referred to as the “Parties”. 1. Definitions For the purposes of this Agreement, the following definitions shall apply:
2. Representations Warranties The Seller represents and warrants that the property is currently in either the “active under contract” or “under contract” status, as defined above. 3. Rights Obligations The Parties acknowledge and agree that the rights and obligations associated with the “active under contract” status differ from those associated with the “under contract” status, and they shall act accordingly in fulfilling their respective duties under this Agreement. 4. Governing Law This Agreement shall be governed by and construed in accordance with the laws of the state in which the property is located. IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above. |