What Does Under Contract Mean When Buying a House?

The real estate industry is one of the most complex things that you could take part in and there are a lot of caveats that can become obstacles for you if you don’t learn about them beforehand and preempt any and all problems that they can cause for you without you being able to predict them to a reasonable degree. For example, sometimes you might buy a house under contract, and if you don’t know what that means and don’t strive to uncover examples of what it entails then suffice it to say that you are setting yourself up for failure and you will really regret your choices in that respect.

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To put it simply, according to Mary Cheatham King buying a house under contract means that the seller will have certain contingencies that would need to be met before the sale can be final. A really pertinent example of this that can help you get by in your day to day life is associated with a buyer only being willing to buy a home if they are able to sell their own home in time.

The way that this works is that an earnest money payment will be made in good faith, and the buyer will pay the rest of the amount as soon as the sale of their own home has been finalized. However, if the buyer were to fail to sell their home, they would also be forced to renege on their contract in which case said earnest money deposit would now be forfeit and there would be no way at all to get that back.