An agreement is considered to be in this state when a buyer and seller have mutually accepted the terms of a real estate transaction, signifying a binding commitment. While the property listing may still appear on the market, it indicates that the seller is presently obligated to proceed with the sale contingent upon the fulfillment of specific conditions, such as inspections, financing approval, or appraisal contingencies. For example, after weeks of negotiation, both parties sign the purchase agreement, outlining the agreed-upon price, closing date, and responsibilities, the status of the sale progresses to this phase.
This stage is a crucial marker in the property transaction process, representing a significant step closer to completion. Understanding the implications of a property’s status as such is essential for potential buyers and sellers alike. For buyers, it signifies that the property is likely unavailable, though monitoring the listing for changes is advisable in case the existing agreement falls through. For sellers, it represents a commitment to the agreed-upon buyer, requiring them to fulfill their contractual obligations in good faith. Historically, this designation arose to provide clarity and transparency in real estate listings, helping to manage expectations and streamline the sales process.
