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What does active contract mean in real estate

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Understanding Active Contracts in Real Estate: A Comprehensive Guide

If you are new to the world of real estate or seeking clarification on the term "active contract," you have come to the right place. This article aims to provide a clear and concise explanation of what active contracts mean in real estate, its benefits, and when it is relevant. Let's dive in!

I. What is an Active Contract in Real Estate?

  • Definition: An active contract refers to a legally binding agreement between two parties involved in a real estate transaction. It signifies that the negotiations have been successfully completed, terms have been agreed upon, and both buyer and seller are obligated to fulfill their respective responsibilities.

II. Positive Aspects of Active Contracts:

  1. Legal Protection:

    • Active contracts offer legal protection to both buyers and sellers, ensuring that all parties adhere to the agreed-upon terms and conditions.
    • They serve as a safeguard against any potential breaches or misunderstandings, promoting a fair and transparent transaction process.
  2. Clarity and Certainty:

    • Active contracts provide a clear roadmap for the entire real estate transaction, including purchase price, contingencies, timelines, and responsibilities of each party.
    • They eliminate ambiguity and offer certainty, minimizing the risk of disputes and promoting

Understanding "Active Under Contract" in Real Estate Listings

Discover what "active under contract" means in real estate listings. Learn about its implications for buyers, sellers, and the overall market.

In the world of real estate, understanding the terminology used in listings is crucial. One term that often raises questions is "active under contract." What does it mean? How does it impact buyers and sellers? In this article, we will delve into the meaning of "active under contract" and explore its significance in the US real estate market.

What Does "Active Under Contract" Mean for Real Estate Listings?

When a property is listed as "active under contract," it indicates that the seller has accepted an offer from a buyer. However, the sale has not yet been finalized, and certain contingencies may still need to be met. This status is also known as "pending" or "under agreement" in some regions.

Implications for Buyers and Sellers

For Buyers:

  1. Limited Opportunity: When a property is marked as "active under contract," it means that another buyer has made an offer, and the seller has accepted it. As a result, prospective buyers can no longer make offers on the property. However, if the

What does active under contract mean with house sale

Understanding "Active Under Contract" in the US Real Estate Market

In the fast-paced world of real estate transactions, it is crucial to understand the various terms associated with buying or selling a home. One such term that often appears on property listings is "Active Under Contract." This review aims to shed light on what this term means in the context of house sales in the United States. By providing a comprehensive explanation of its significance, we seek to assist potential buyers and sellers in navigating the complexities of the real estate market.

What Does "Active Under Contract" Mean?

In the US real estate market, "Active Under Contract" is a status given to a property listing that signifies it is under contract but remains actively marketed. When a seller accepts an offer from a potential buyer, the property is considered "under contract." However, it is still listed as "Active Under Contract" until the closing process is completed. During this time, other interested buyers can still submit backup offers, which can be considered if the initial contract falls through.

Understanding the Significance:

  1. Seller Perspective:

    For sellers, having their property listed as "Active Under Contract" provides potential advantages. Firstly, it serves as an assurance of progress in the sales process, indicating that negotiations have reached an


What is the difference between pending and active with contract?

Pending status is somewhat similar to ACTIVE UNDER CONTRACT. The main difference the seller is not interested in entertaining any backup offers and the home is no longer available to show. Sometimes we have people ask about properties they are interested in but unfortunately, the home is already 'pending'.

What is the difference between pending and active?

When a property is listed as “active under a contract,” there are conditions/contingencies that must be met before the deal can close. However, when a property is listed as “pending,” all the contingencies have been met and the deal is on the road to being finalized.


What is the difference between active and pending in real estate?

Active with Offer indicates there is an accepted offer, but the seller still wants to show the property and seek secondary offers in case the buyer falls through. These listings will remain in Active searches. Pending indicates the seller has an accepted offer and showings are no longer occurring.

What is the difference between contingent and active?

A property listed as contingent means the seller has accepted an offer, but they've chosen to keep the listing active in case certain contingencies aren't met by the prospective buyer. If a property is pending, the provisions on a contingent property were successfully met and the sale is being processed.

What does it mean when a house for sale is active under contract?

'Active under contract'

Active under contract means the seller has accepted an offer, but they're also welcoming backup offers. The seller may have reason to believe their current deal isn't on solid footing, or perhaps they're just being extra cautious because nothing's final until closing.

Frequently Asked Questions

What does it mean when Zillow says under contract?

What Does Under Contract Mean in Real Estate? 'Under Contract' is probably the most accurate way to describe a pending or 'contingent' sale. It means the same as the other statuses above; a buyer and seller have agreed to terms and have executed a contract. But, the contract has yet to go to closing.

Does under contract mean sold?

The Bottom Line: A Home Under Contract Isn't Quite Sold Yet

A home that's under contract indicates a seller has accepted a buyer's offer to purchase the property. But before the sale of the home can actually close, certain contingencies must first be met. Otherwise, the deal can still fall through.

What does it mean when a house is under contract but continue to show?

It means that the seller has an offer that is either pending to confirm OR the home is under contract but other buyers can still "look" while the first buyer confirms (through inspections or other) if they will follow through with the purchase.

What's the difference between active under contract and pending?

Key Takeaways. “Under contract” means the seller has accepted an offer, but there are still conditions to clear before closing. “Active under contract” means the seller is welcoming backup offers. “Pending” means the home is under contract, and all conditions have been met for the deal to close.

Can a seller accept other offers while under contract?

While laws vary by state, in general, up until that contract is signed by both parties—even after counteroffers have been sent out—all new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.

FAQ

What's the difference between contingent and under contract?

Once your home is under contract, but some contingencies need to be met, your property is considered contingent. A contingent contract means that some condition hasn't yet been met, and both parties have not agreed to move forward with executing the deal as planned.

What does active under contract mean rental?

Active under contract for a rental means there is an approved renter, and possibly even a signed lease, but the process is not complete. Likely, the property is still being marketed and shown to potential renters.

What is the difference between active under contract and contingent?

To recap, Active under contract means that a real estate listing has a potential buyer, but contingencies are in place. This real estate term is used interchangeably with Contingent status. You've still got a chance to buy this home, as up to 10% of homes fall out of contract during the contingency period.

What does active status mean on a real estate listing?

Currently available for sale

What Does It Mean When a House is Active? Most of the properties listed in the multiple listing service (MLS), the database where real estate agents list homes for sale, will have an active status. That's because an active status means that the home is currently available for sale.

What does active under contract mean on Redfin?

When a home is active under contract it means that a buyer has made an offer on the home and the seller has accepted, but the sale is not yet final. When the transaction is complete, the status of the home will show that it has sold.

What does active contract mean in real estate

Is active under contract the same as pending?

Key Takeaways. “Under contract” means the seller has accepted an offer, but there are still conditions to clear before closing. “Active under contract” means the seller is welcoming backup offers. “Pending” means the home is under contract, and all conditions have been met for the deal to close.

What is the difference between contingent and active under contract?

To recap, Active under contract means that a real estate listing has a potential buyer, but contingencies are in place. This real estate term is used interchangeably with Contingent status. You've still got a chance to buy this home, as up to 10% of homes fall out of contract during the contingency period.

What does pending vs contingent vs active under contract mean?

The difference is that contingent listings still need to meet one or more specific conditions before moving forward. With pending deals, conditions have been met, and both parties are planning to move forward to closing. As a buyer, you may be able to make a backup offer on a listing that's under contract.

What does it mean when a house is active and under contract?

“Active Under Contract” is a real estate term that indicates the status of real property (single family home, condo, townhome, etc.) that has been put up for sale wherein a seller has accepted an offer from a buyer, but the deal has not yet closed. This term is primarily used in the State of California.

What does it mean when a house for sale is active under contract?

In real estate, a property is said to be active under contract when the seller and a potential buyer have agreed on a sales price and are in the early stages of 

  • What does active under contract in a real estate transaction
    • Mar 21, 2018 — “Active Under Contract” is a real estate term that indicates the status of real property (single family home, condo, townhome, etc.) 

  • What does active pending mean?
    • All about active/pending

      The transaction is considered pending until the buyer actually closes escrow. That's all straightforward, but what does it mean when the listing says “active/pending”? It usually means the seller would like to get more offers, says Denise Shur, a Realtor® with 1:1 Realty in San Jose, CA.

  • Does active under contract mean sold?
    • When a home is listed as active under contract, it means that the sellers have accepted an offer from a buyer. But the deal is still in the early stages and hasn't yet closed.

  • Real estate what does active under contract mean
    • Nov 28, 2018 — This property is currently under contract and is pending settlement. Days on Market DOM and CDOM do not accumulate when a listing is Pending in 

  • What comes first active under contract or pending?
    • “Under contract” means the seller has accepted an offer, but there are still conditions to clear before closing. “Active under contract” means the seller is welcoming backup offers. “Pending” means the home is under contract, and all conditions have been met for the deal to close.

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