As a professional, I know that one of the key factors that dictate the success of an article is its ability to answer a common question. In real estate, one of the most frequently asked questions is, "What is the difference between contingent pending and under contract?" This may seem like a simple question, but it can be confusing for those who are not well-versed in the terminology used in real estate transactions. In this article, I will provide a clear and concise explanation of the difference between these terms.

Contingent

When a property is listed as "contingent," it means that a buyer has made an offer on the property, but there are conditions that must be met before the sale can be completed. These conditions are typically spelled out in the purchase agreement and may include things like the buyer obtaining financing, the completion of a home inspection, or the sale of the buyer`s current home. Until these conditions are met, the sale is "contingent" upon their completion. If the conditions are not met, the sale may fall through, and the property will become available again.

Pending

When a property is listed as "pending," it means that all of the conditions of the sale have been met, and the sale is waiting to close. This means that the buyer has obtained financing, the home inspection has been completed, and any other contingencies spelled out in the purchase agreement have been satisfied. The seller has accepted the offer, and the sale is waiting for the final paperwork to be signed and the funds to exchange hands. A property that is pending is no longer available for showings or offers.

Under Contract

When a property is listed as "under contract," it can be used interchangeably with "pending." However, some real estate agents and buyers may use this term to indicate that the sale is still in progress, but some of the conditions have not yet been met. This means that the buyer may be working on obtaining financing, or the home inspection may still be pending. In this case, the property is technically still "contingent" upon the completion of these conditions, but the sale is moving forward.

In summary, "contingent," "pending," and "under contract" all refer to different stages of a real estate transaction. "Contingent" means that the sale is waiting for certain conditions to be met, "pending" means that all conditions have been satisfied, and the sale is waiting to close, and "under contract" can be used interchangeably with "pending," or it may indicate that some conditions are still pending. Understanding these terms will help buyers and sellers navigate the real estate market with confidence.