When you are in the process of buying or selling a property, you may come across the term “pending” when referring to the status of a contract. In real estate, a pending contract means that an agreement has been reached between the buyer and seller, but the sale has not yet been completed. This can be due to various reasons, including financing issues, home inspections, or title searches.
A pending contract is often considered the in-between stage of a real estate transaction. It signals that both parties have agreed to the terms of the sale and are working toward finalizing the deal. Once the sale is complete, the property will be marked as sold, and the transaction will be recorded in public records.
In most cases, a pending contract means that the buyer has submitted an offer on the property, which the seller has accepted. However, the sale has not yet closed, and the property is still technically available for other buyers to submit offers. As a buyer, it is essential to understand that you cannot purchase a property that is already under contract.
If you are a seller with a pending contract, you may still be open to accepting backup offers. A backup offer is a secondary offer that is made on a property that already has a pending contract. If the original contract falls through for any reason, the backup offer becomes the primary offer and takes its place.
When a contract is pending, both parties typically have certain obligations they must fulfill before finalizing the sale. For example, the buyer may need to secure financing or complete a home inspection, while the seller may need to clear any title issues or make necessary repairs.
Overall, a pending contract in real estate means that a deal is in progress, but it has not yet been completed. It is an important stage in the buying and selling process, and both parties must work together to ensure a successful closing. As a buyer or seller, it is essential to have a reliable real estate agent who can guide you through the entire process and help you navigate any challenges that may arise.