In the world of commercial real estate, the term “under contract” is commonly used to describe a specific stage in the sales process. When a property is labeled as being “under contract,” it means that a buyer has made an offer on the property, and the seller has accepted that offer. However, the sale is not yet final.
During the period between accepting the offer and closing the sale, the property is considered to be “under contract.” This means that both the buyer and the seller are legally bound to complete the transaction, as long as certain conditions are met. These conditions may include things like finalizing financing, completing inspections, and resolving any outstanding legal issues.
While a property is under contract, it is generally not available for sale to other buyers. This is because the buyer who has made the offer has a legally binding agreement with the seller, and the seller cannot accept any other offers until the original agreement has been finalized. In some cases, however, a seller may choose to include a contingency clause in the contract that allows them to continue to market the property to other buyers while the first buyer is completing their due diligence and financing.
When a property is under contract, it is important for both the buyer and seller to work closely with their respective agents and attorneys to ensure that all conditions of the contract are being met. The buyer will typically have a specific amount of time to complete inspections and secure financing, and the seller will need to provide any necessary documentation or information in a timely manner.
Once all the conditions of the contract have been met, the sale can move forward to closing. At closing, the buyer will pay the agreed-upon purchase price, and the seller will transfer the deed to the property to the buyer. At this point, the property is officially sold, and the transaction is complete.
In conclusion, “under contract” is a term commonly used in commercial real estate to describe a property that is in the process of being sold. When a property is under contract, the buyer and seller are legally bound to complete the transaction, subject to certain conditions being met. It is important for both parties to work closely with their agents and attorneys to ensure that all aspects of the contract are being met, in order to facilitate a smooth and successful sale.