What is active under contract?

Here's some information about "Active Under Contract" in real estate, formatted in Markdown with the requested links:

Active Under Contract (AUC)

"Active Under Contract" (AUC) is a status in real estate listings that indicates a seller has accepted an offer from a buyer, but the sale is not yet final. There are usually contingencies that still need to be met before the deal closes. Think of it as being past the "pending" stage but not yet "sold."

Key aspects of "Active Under Contract":

• Offer Accepted: The seller has formally accepted a buyer's offer. The house is no longer simply "active" and available for anyone to make an offer without competition.

• Contingencies: The contract typically includes <a href="https://www.wikiwhat.page/kavramlar/Contingencies%20In%20Real%20Estate">contingencies</a> that need to be satisfied for the sale to proceed. Common contingencies include:

  • <a href="https://www.wikiwhat.page/kavramlar/Home%20Inspection">Home Inspection</a>: The buyer has the right to inspect the property. If significant issues are found, they can renegotiate the price, request repairs, or back out of the deal.
  • <a href="https://www.wikiwhat.page/kavramlar/Appraisal%20Contingency">Appraisal Contingency</a>: The property must appraise for at least the agreed-upon purchase price. If it appraises lower, the buyer may be able to renegotiate or cancel the contract.
  • <a href="https://www.wikiwhat.page/kavramlar/Financing%20Contingency">Financing Contingency</a>: The buyer must be able to secure financing (e.g., a mortgage) to purchase the property. If they are unable to get approved for a loan, they can typically back out of the contract.
  • Title Contingency: Ensures the <a href="https://www.wikiwhat.page/kavramlar/Title%20Search">title</a> is clear and transferable.

• Still Potentially Available: While the property is under contract, there's a chance the deal could fall through if the contingencies aren't met. In some cases, sellers might continue to show the property and accept "backup offers" in case the initial deal fails.

• Not Sold: The property isn't considered "sold" until all contingencies are removed and the closing has been completed.

• Impact on Buyers: Buyers seeing a listing with "Active Under Contract" should understand that while the property is not readily available, there's still a small chance it could come back on the market if the current deal falls apart. It might be worth inquiring about the status of the contingencies or if the seller is accepting backup offers.

• Impact on Sellers: Sellers need to manage the contingency period carefully, ensuring that all required actions (e.g., providing access for inspections, responding to repair requests) are handled promptly.