What is the difference between under contract and sold?

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asked Apr 8 in Real Estate - Renting by checkanything (920 points)
What is the difference between under contract and sold?

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answered Apr 8 by AngieSmit (18,450 points)
The difference between under contract and sold in real estate means that when the property or home is under contract it means that the seller has accepted an offer from a buyer but the sale is not yet final until all of the contingencies are met.

Sold means that the seller has accepted the offer and the contingencies have been met such as the paperwork has gone through and the loan has been approved.

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.

It typically takes 4 – 8 weeks from the date the offer is accepted until the sale is complete.

In real estate, a contingency refers to a clause in a purchase agreement specifying an action or requirement that must be met for the contract to become legally binding.

Both the buyer and seller must agree to the terms of each contingency and sign the contract before it becomes binding.

Some of the most common contingencies in real estate are.

Inspection Contingencies. In the home buying process, inspections are for your benefit, as the buyer.
Financing Contingency.
Appraisal Contingency.
Title Contingency.
Home Sale Contingency.

Common contingencies in real estate include an appraisal contingency, inspection contingency, sale contingency or funding contingency.

A pending home sale takes place after the seller has accepted an offer and the contract between both parties has been signed.

When a home sale is pending, it is no longer considered an active listing on the local multiple listing service, which is where agents provide information on available properties.

In a contingent offer, a buyer could make an offer with a contingency on anything but sellers are unlikely to agree.

Sellers do not have to accept every contingency that a buyer puts into a contract, and both parties must agree on all contingencies before signing a contingent offer.

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