When it comes to real estate, the term “in contract” is often thrown around. But what does it actually mean? In simple terms, being “in contract” means that a buyer and a seller have agreed on the terms of the sale and have signed a contract.

During the negotiation process, the buyer and seller will work out the details of the sale, including the purchase price, any contingencies, and the closing date. Once both parties have agreed to these terms and have signed the contract, the property is considered “in contract” or “under contract.”

From a legal standpoint, being “in contract” means that the buyer and seller have entered into a binding agreement. Both parties are now obligated to fulfill the terms of the contract. For example, the seller must transfer ownership of the property to the buyer on the agreed-upon closing date. If either party fails to meet their obligations, they may be in breach of the contract.

It`s important to note that being “in contract” does not mean that the sale has been finalized. There are still several steps that need to be completed before the sale can be closed, including inspections, appraisals, and financing. If any issues arise during these steps, either party may have the right to back out of the contract.

As a buyer, it`s important to understand the implications of being “in contract.” Once you`ve signed a contract, you`re legally obligated to follow through with the purchase. Make sure you`ve thoroughly reviewed and understand the terms of the contract before signing.

As a seller, being “in contract” means that you`ve found a buyer and are one step closer to completing the sale. However, it`s important to continue to comply with the terms of the contract to ensure a successful closing.

In conclusion, being “in contract” in real estate means that a buyer and seller have agreed to the terms of a sale and have signed a binding contract. While there are still several steps that need to be completed before the sale can be closed, being “in contract” is a significant milestone in the real estate transaction process.