the contract is a legally binding agreement, and both parties must perform their contractual obligations or risk a lawsuit for breaching the contract. the law is a complicated thing, however, and there are circumstances under which a seller may have the option of backing out after all. a sales contract between you and the seller is a legally binding agreement, but don’t assume the deal exists just because you both signed on the dotted line. in california and other states, a contract isn’t legally binding until something of value gets exchanged. as a buyer, you probably wanted to put some safeguards into your contract. you may have, for example, added a contingency stating that you may cancel the sale if your current home fails to sell or if your mortgage financing falls through. the standard residential purchase agreement published by the california association of realtors, for example, contains a clause permitting the seller to cancel if the buyer fails to deposit certain monies into escrow by a specified time. if a seller cancels the sale under a viable clause in the sale contract, you must generally accept the cancellation and move on.

georges is the co-founder of nestapple and has been working as an active real estate investor for over a decade. you finally found the home that you know is the one, but it is “under contract.” for a buyer, this can be not very reassuring. “under contract” means a buyer has put in an offer that the seller has accepted. for instance, a buyer may include a contingency that allows them to back out without consequences if they realize the house needs significant repair or a significant problem arises. a written purchase contract between buyer and seller outlining the deal’s terms must be signed for a house to be considered officially “under contract.” the house is officially ” under contract when the buyer and the seller signed a written agreement; the house is officially “under contract.” as a result, the seller cannot legally sell their home to any other buyer unless both buyer and seller are not meeting the terms outlined in the contract. keep in mind a buyer, and a seller must meet the contract’s terms for a deal to close. for instance, the buyer might be unsatisfied with the result of a house inspection.

when the homeowner has decided they want their house listed for sale, they will contact a real estate agent to help them. with the help of their agent, buyers have to find a price that will be acceptable to the seller. a contingency is a clause that needs to be completed before the home sale can be finalized. sometimes a buyer will try to make the sale of their current home a contingency. contingencies have to be met before the home will get a new owner.

however, the sale is not yet final as there are a number of things that need to happen before the closing. the lender is motivated to have an appraisal to make sure that the amount of money that they are loaning to the buyer for your home is a fair market value. in general, though, you will need to ensure that the following actions are taken once you are under contract on a house. as the buyer, the home inspection is a wonderful opportunity for you to understand what exactly it is you are buying. usually, there are pre-closing documents that you will need to take a look at and sign.

then, you look at the status and that other shoe finally has a chance to drop: it’s “under contract.” if it’s currently a buyer’s market, the buyer usually submits an offer that is below the asking price to see if it gets accepted. if it’s a seller’s market, this is when a buyer may offer to pay for part of the seller’s closing costs in an effort to really make their pitch stand out. the seller has put an offer on a new property of their own, and that transaction is contingent on the sale of yet another property.