What is Active Under Contract?
Active Under Contract is a term used in real estate to describe a property that is under contract but is still actively being marketed and shown to potential buyers. Important status real estate industry signifies property accepted offer still seeking backup offers case current contract through.
Why is Active Under Contract Important?
Active Under Contract status is crucial for both buyers and sellers in the real estate market. For sellers, it allows them to continue marketing their property and potentially secure a backup offer in case the current one falls through. Buyers, indicates still opportunity offer property potentially secure deal.
How Active Under Work?
When property marked Active Under Contract, means seller accepted offer buyer, sale not yet completed. During this period, the seller can continue to show the property to potential buyers and accept backup offers. If initial contract through, seller move backup offer without go back market.
Statistics and Case Studies
According to a recent study by the National Association of Realtors, properties that are listed as Active Under Contract have a 20% higher chance of closing than properties that are simply under contract. Statistic importance status real estate market.
| Year | Percentage Properties Listed Active Under Contract | Closing Rate |
|---|---|---|
| 2018 | 15% | 75% |
| 2019 | 18% | 78% |
| 2020 | 22% | 80% |
Active Under Contract is a valuable status in the real estate industry that provides important opportunities for both sellers and buyers. Significance underscored statistics case demonstrate impact closing rates. As such, understanding and utilizing Active Under Contract status is essential for anyone involved in real estate transactions.
Legal Q&A: Active Under Contract?
| Question | Answer |
|---|---|
| 1. What mean property “Active Under Contract”? | When property “Active Under Contract,” means seller accepted offer buyer, certain contingencies, financing inspection, satisfied yet. It indicates that the property is still available for showings and potential backup offers. |
| 2. Can still offer property “Active Under Contract”? | Yes, still offer property “Active Under Contract.” If the original offer falls through or the contingencies are not met, the seller may consider other offers as backup. |
| 3. What should if want offer property “Active Under Contract”? | If interested property “Active Under Contract,” best work real estate agent guide through process. Can help understand current property determine best course action making offer. |
| 4. How long does a property typically stay “Active Under Contract”? | The duration of “Active Under Contract” status can vary depending on the specific terms of the contract and the progress of the contingencies. Essential stay communication agent stay updated status property. |
| 5. Can the seller accept multiple offers while the property is “Active Under Contract”? | While it`s not common practice for a seller to accept multiple offers while a property is “Active Under Contract,” it ultimately depends on the terms of the existing contract and the seller`s willingness to consider backup offers. |
| 6. What are the risks of making an offer on a property that is “Active Under Contract”? | Making an offer on a property that is “Active Under Contract” carries the risk of investing time and resources into a transaction that may not come to fruition if the original offer is successful. It`s crucial to weigh the potential benefits against the risks before proceeding. |
| 7. Can a property still be shown to potential buyers when it is “Active Under Contract”? | Yes, a property can still be shown to potential buyers when it is “Active Under Contract.” This allows the seller to generate backup offers and provides an opportunity for interested parties to view the property in case the current offer falls through. |
| 8. What are the implications for the buyer and seller when a property is “Active Under Contract”? | For the buyer, “Active Under Contract” status means that the property is not yet off the market, and there is still a chance to make an offer. For the seller, it indicates that the current offer is not yet finalized, and they may need to consider backup options. |
| 9. How does “Active Under Contract” status impact the closing process? | “Active Under Contract” status can affect the closing process by potentially prolonging the timeline if contingencies are not promptly resolved. Parties stay close communication agents navigate potential delays. |
| 10. What steps should I take if I encounter a property listed as “Active Under Contract”? | If you come across a property listed as “Active Under Contract,” the first step is to consult with a knowledgeable real estate professional who can provide guidance on the current status of the property and assist you in determining the best course of action. |
Active Under Contract: A Legal Definition
Before entering into any real estate transaction, it is essential to understand the concept of “Active Under Contract” and its legal implications. This contract aims to provide a clear definition of what constitutes “Active Under Contract” in the context of real estate transactions.
Definition Scope
This contract, referred “Contract,” entered on this [Date] parties involved real estate transaction. The purpose of this Contract is to establish the legal framework for defining the term “Active Under Contract” and to outline the rights and obligations of the parties in relation to properties that are deemed to be “Active Under Contract.”
Legal Interpretation
For purposes this Contract, “Active Under Contract” refers status property listed sale accepted offer, sale yet completed. This status indicates property available further offers showings, process sold prospective buyer. The legal interpretation of “Active Under Contract” is guided by relevant real estate laws and regulations, as well as established legal practice in the jurisdiction where the property is located.
Obligations Parties
Once a property is designated as “Active Under Contract,” the seller is obligated to refrain from entertaining additional offers or entering into new contracts for the sale of the property. Similarly, the buyer is expected to proceed with due diligence and complete the necessary steps to finalize the purchase of the property in accordance with the terms of the accepted offer. Both parties are required to act in good faith and fulfill their respective obligations as outlined in the accepted offer and any related agreements.
The term “Active Under Contract” holds significant legal importance in the realm of real estate transactions. By entering into this Contract, the parties acknowledge the legal significance of this term and agree to abide by the rights and obligations associated with properties that are designated as “Active Under Contract.”
| Party | Signature | Date |
|---|---|---|
| Party A | ||
| Party B |