I have been following a lot of talk about “when is a contract pending?“. It is an interesting conversation. I am speaking about a residential contract! Is a contract pending when it is executed (signed both sides), or when the contract goes hard (money is deposited and inspections are done or the due diligence period is completed) or if there are other contingencies that are met? Are you confused yet? Ok, know that it starts with the listing agreement….withhold verbal offers, etc., and finishes with the contract closing.
You have to read the listing agreement and understand it as that is the agreement that will bind you and the Seller, also depending on what type of agent you choose…transaction or single agency? Then you move on to the sales contract, and you need to read and understand the sales contract. You may believe that a contract is pending when deposit money is in and all is signed, but if it is an AS-IS transaction, then when the inspections are completed? Or if there is a financing contingency, or that the Seller needs to deliver a clear title to the property….all of these contingencies will affect that aspect of pending. What about a back-up offer/contract?
I have seen many agents bind their Sellers to (2) offers as they don’t understand back-up. So my Fellow REALTORS, are you throughly confused yet? Hopefully, I have said it enough…..READ the documentation and in your MLS there is a section that determines when a status change to Pending needs to be made…..the MLS asks if there are contingencies…you will need to answer that part. So before you jump into the….”When is a contract pending?” conversation…please, please read the contract…all of it not just the parts you like or understand. If you don’t understand speak to a REAL ESTATE attorney. And then read the contract again so that you understand it thoroughly, because only then can you understand what is pending.
Until next Monday…Be good to one another…be Professionals!