10 août 2022

What Does It Mean to Be in Contract on a House

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Buying a house is an exciting process, but it can also be overwhelming and confusing. One term that you might come across during the home buying process is being “in contract” on a house. What does this mean, exactly?

Put simply, being in contract on a house means that you’ve reached an agreement with the seller about the terms of the sale. This agreement is usually made in the form of a contract that outlines the purchase price, any contingencies or conditions that need to be met before closing, the closing date, and any other details related to the sale.

Once you and the seller have both signed the contract, you are legally bound to follow its terms. This means that you’ll need to make sure you’re able to secure financing (if necessary), perform inspections, and meet any other conditions outlined in the contract by the agreed-upon dates. If you fail to do so, you risk losing your deposit and potentially facing legal consequences.

Being in contract on a house is a major milestone in the home buying process, as it means that you’re one step closer to becoming a homeowner. However, it’s important to remember that the sale isn’t final until the closing takes place. Until then, there are still a number of things that can go wrong and cause the sale to fall through.

For example, if the inspection uncovers major issues with the property, you may need to renegotiate the terms of the contract or even back out of the sale altogether. Similarly, if you’re unable to secure financing or if the seller is unable or unwilling to meet certain conditions outlined in the contract, the sale may not be able to move forward.

That said, being in contract on a house is generally a positive sign that the sale will go through. It’s a sign that both you and the seller are committed to reaching an agreement and moving forward with the sale.

If you’re in the process of buying a home and have questions about what it means to be in contract, don’t hesitate to reach out to your real estate agent or a real estate attorney. They can help you navigate the process and ensure that you’re making informed decisions every step of the way.

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