Transactions
What is under contract?
Also called: Pending
A property is under contract when a seller has accepted an offer and both parties are bound by a purchase agreement, but the sale has not yet completed because contingencies or closing steps remain.
Under contract is not sold. Contingencies may still be live, financing may still fail, and a meaningful share of agreements collapse before closing — which is why many markets distinguish 'active under contract' from 'pending'.
The distinction matters commercially. A listing marked active under contract usually indicates the seller is still accepting backup offers because contingencies remain outstanding.
For sellers, the period between acceptance and closing is the highest-risk stretch of the whole process, and the one where communication failures most often cost the deal.
Related terms
A contingency is a condition written into a purchase contract that must be met for the sale to proceed, allowing the buyer to withdraw without losing their deposit if it is not.
Escrow is an arrangement where a neutral third party holds funds and documents on behalf of a buyer and seller, releasing them only once every agreed condition of the sale has been satisfied.
Closing costs are the fees and charges payable at completion of a property sale, separate from the purchase price — typically including loan origination, title, escrow, recording, and prepaid taxes and insurance.
Days on market counts how long a listing has been actively for sale since it was published. It is used both as a market-health indicator and, by buyers, as a signal of negotiating room.