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What does going under contract mean?
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When a property is offered for sale the owner is soliciting offers to buy the property. The seller is not obliged to accept any of the offers he receives. He might need to compensate the listing agent for bringing full price offers but the self proclaimed seller does not have to sell.
If on the other hand an offer to buy meats the seller’s requirements and common ground is found between buyer and seller both will sign the contract to buy and sell real estate. As long as the buyer fulfills all the contractual obligations the seller is not able to deny the buyer the right to purchase the property. In most cases the seller has contracted with specific performance.
Once the contract to buy and sell real estate has been signed by buyer and seller the property is under contract. It can no longer be contracted with another, different buyer. The seller is put in a position of wait and see. The buyer is calling the shots and can or can not follow through with the purchase. |
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