What is the difference between pending and under contract? This is a common question among those involved in real estate transactions. Both terms indicate that a property sale is in progress, but they refer to different stages of the process. Understanding the distinction between these two terms is crucial for buyers, sellers, and real estate professionals alike.
Pending refers to the period between when an offer is accepted and when the sale is finalized. During this time, various steps must be completed, such as the buyer’s inspection, appraisal, and obtaining financing. The property is still technically available for sale, and other potential buyers may still make offers. However, the seller is under contract with the buyer, and the sale is considered “pending” until all conditions are met and the transaction is closed.
Under contract, on the other hand, signifies that the buyer and seller have agreed to the terms of the sale, and the transaction is in the process of being finalized. At this stage, the property is no longer available for sale to other potential buyers. The buyer has typically submitted an offer, and the seller has accepted it. The property is now “under contract,” and the sale is progressing towards completion.
One key difference between pending and under contract is the level of commitment. Pending implies that the sale is still subject to certain conditions, while under contract suggests that the deal is essentially finalized, with only the final steps remaining. Once the property is under contract, the buyer and seller must fulfill their obligations to close the transaction.
Another distinction lies in the timeline. Pending can last for a variable amount of time, depending on the specific conditions and the efficiency of the transaction process. Under contract, however, typically has a more defined timeline, as the buyer and seller have agreed to a specific closing date.
In summary, the main difference between pending and under contract is the stage of the real estate transaction. Pending refers to the time between acceptance of an offer and finalizing the sale, while under contract signifies that the deal is essentially complete, with only the final steps remaining. Both terms are essential for understanding the progress of a property sale and the responsibilities of both buyers and sellers.
