Under Contract Example Sentence: What Does it Mean?
If you are looking for a property to purchase or rent, you have likely come across the term “under contract.” This phrase is often used in real estate and refers to a legal agreement between a buyer and seller. But what exactly does “under contract” mean, and how does it affect your ability to purchase or rent a property?
The phrase “under contract” means that a seller and buyer have come to an agreement on the terms of a sale or lease, and a contract has been signed. The contract outlines the terms of the deal, including the purchase price or rent amount, closing date, and any other conditions that must be met before the sale or lease is finalized. The seller has committed to selling or leasing the property to the buyer, and the buyer has committed to purchasing or renting the property.
When a property is under contract, it is no longer available for sale or rent. The seller cannot entertain other offers, and the buyer cannot back out of the deal without facing legal consequences. The property cannot be shown to other potential buyers or renters, and any marketing materials related to the property must be updated to reflect its under-contract status.
An example sentence of “under contract” in real estate might look something like this: “The three-bedroom house on Maple Street is currently under contract, with a closing date set for next month.” This sentence tells you that the property is no longer available for sale, as a buyer has already signed a contract to purchase it. The closing date provides additional information about when the sale is set to be finalized.
If you are interested in purchasing or renting a property that is under contract, you can still express your interest to the seller or real estate agent. However, the seller is legally obligated to honor the existing contract, so your chances of being able to purchase or rent the property are slim.
In conclusion, “under contract” is a term used in real estate to indicate that a buyer and seller have signed a legally binding agreement for the sale or lease of a property. This phrase signals that the property is no longer available for sale or rent and provides important information about the status of a real estate transaction. If you are looking to buy or rent a property, be sure to check its status before making an offer or signing a lease agreement.