What Does Active Under Contract Mean In Real Estate? (Perfect answer)

What does active under contract mean? This means that the buyer has made a formal offer on the property, and the seller has accepted it. The point of this period is for the buyer to conduct all of their due diligence, for the appraisal to be completed, and for the formal loan approval to be obtained.

  • Active under contract means the seller can continue showing the house and accepting an offer in some areas. Not all areas have active under contract status, and some may move from ‘active’ to pending entirely, skipping active under contract.


Can you make an offer on an active under contract?

If a house is under contract, can I still make an offer? Yes, you may make an offer. However, the seller cannot accept your offer unless there is a breach of the current contract to which they are a party.

What is the difference between active under contract and pending?

Active Under Contract vs Pending When a property is listed as “active under a contract,” there are conditions/contingencies that must be met before the deal can close. However, when a property is listed as “pending,” all the contingencies have been met and the deal is on the road to being finalized.

Can you still show a house that is under contract?

A home can still be shown, even if you have a contract signed by the seller. If inspections, the appraisal and your mortgage approval go as planned, the home is as good as yours because you’re under contract. However, a seller can’t cancel on you simply because they receive a better offer.

Can a seller accept another offer while contingent?

Contingent – With No Kick-Out This means the seller cannot accept another buyer’s offer unless certain requirements are not satisfied with the current accepted offer. This is good for the current buyer, because they can’t be “kicked out” unless they don’t meet their contingencies.

What does active status mean on Zillow?

Active. This means that a property is currently on the market and available for sale. It may have received offers, but none have yet been accepted, which means that the opportunity is wide open for you to make a proposal.

How long does it take to close on a house?

How Long Does Closing Take? Typically, you can expect closing on a house to take 30 – 45 days.

Can a seller put a house back on the market while under contract?

Generally, a seller can’t change their mind about selling when a house is under contract. The contract is a legally binding agreement, and both parties must perform their contractual obligations or risk a lawsuit for breaching the contract.

Does under contract mean sold?

Under contract means that a seller has accepted an offer on the property, but the sale is not final until all contingencies are met. It typically takes 4 – 8 weeks from the date the offer is accepted until the sale is complete.

What is the difference between under contract and active under contract?

When a listing is in Active Under Contract, that property is under contract, but is still accepting showings and being actively marketed. This property is currently under contract and is pending settlement. Days on Market DOM and CDOM do not accumulate when a listing is Pending in Bright.

Can you outbid a pending offer?

Do not try to outbid the current pending sale; as stated above, this is a no-win situation. Simply bid what you would have bid on the property anyway considering the home value, the location, and the botional tie that you may have to the house.

Can I outbid an accepted offer?

If the purchase contract hasn’t been signed, the seller could accept another offer, even if you think they’ve accepted yours. The seller generally cannot cancel your contract if you are in compliance simply because the seller received a better offer from another buyer.

Can you make an offer on a house that is active contingent?

In most cases, putting an offer in on a contingent home is an option to consider. Although it doesn’t guarantee you’ll close on the home, it does mean you could be first in line should the current contract fall through. Putting an offer in on a contingent home is similar to the homebuying process of any active listing.

Active Under Contract vs. Pending Status: What You Need to Know

In Bright, there are two statuses that appear to be the same but are actually quite different: Active Under Contract and Pending. Despite the fact that both of these statuses are employed while a contract is in existence, there are some variations between them that you should be aware of.

The difference between Active Under Contract and Pending Status in Bright

Active Under Contract refers to a listing that is under contract but is still allowing showings and being actively promoted at the time of the listing. When a listing is in the Active Under Contract state, the number of days on the market (DOM) and cumulative days on the market (CDOM) will continue to accumulate. Bright’s Pending status indicates that a listing is no longer receiving showings or is no longer actively advertised by the brokerage. This property is presently under contract and will be settled as soon as possible.

Please take notice of the following: Prior to the introduction of Active Under Contract, the term Contingent with a Kick-Out (CNTG/KO) or Contingent with No Kick-Out (CNTG/No KO) was used to refer to Active Under Contract.

Active Under Contract was referred to as Active-A, E, F, and O in the TREND lexicon.

To get a print-ready version of the Bright MLS Status Cheat Sheet, please see the link below: Thanks to Bright MLS for providing this status cheat sheet.

Can You Buy a Home That’s Active Under Contract?

Purchasing a property may be both enjoyable and hard. Going house hunting on your own takes time, especially if you’re trying to discover your ideal home in a desirable neighborhood. Suppose you locate exactly what you’re searching for and submit an offer, only to discover that the property has already been sold to someone else. To add insult to injury, you don’t even understand what it means to be “active under contract.” It’s a good idea to become familiar with this word before beginning your property search, and we can assist you with that.

What Does “Active Under Contract” Mean?

When a property is considered to be active under contract in real estate, it means that the seller and a possible buyer have reached an agreement on a sales price and are in the early stages of completing the deal. There are a few important factors to know about a property that is considered “active under contract,” including:

  • In response to a contingent offer from the buyer, the seller has accepted the offer. Prior to the agreement being finalized, some contingencies must be satisfied (for example, a house inspection contingency). The length of the contract is determined by the nature of the contingency
  • It might take anywhere from a few weeks to several months to assess whether or not all contingencies have been satisfied. If all of the conditions are not satisfied, the transaction may fail. In the event that a present contract is terminated, the seller may take into consideration backup proposals received from other possible purchasers.

While the seller and buyer have agreed to commence the deal, the transaction is not yet finalized, which is the purpose here. Because it is impossible to predict whether or not the first agreement will be completed, if you chance to like a home that is currently under contract, don’t be discouraged–prepare to make a compelling offer regardless of whether or not the contract is completed.

Active Under Contract vs Pending

In addition to the words “active under contract” and “pending” on the property listing, you may have also noticed the words “under contract.” Although the principles are similar, there is a significant difference between the two. An “active under contract” listing indicates that the property is subject to certain conditions or contingencies, which must be satisfied before the transaction can be completed. When a property is labeled as “pending,” it means that all of the conditions have been satisfied and that the transaction is on the verge of being completed.

There is always a chance that the transaction will delay or perhaps be terminated entirely in the middle of it.

When looking at properties that are posted as being under contract or as being awaiting sale, it doesn’t hurt to prepare an offer just in case something happens to the home you are interested in.

Why is “Active Under Contract” Needed?

Incorporating conditions into the offer is one method of ensuring that the buyer’s interests are safeguarded. Whenever a buyer submits an offer with contingencies, the seller is required to fulfill and/or remedy specific criteria associated with the property before the transaction can be completed. This provides buyers with the ability to back out of the transaction without incurring any penalties. If, on the other hand, the buyer decides to back out for reasons that were not indicated in the contract.

Typically, it takes several weeks for all of the requirements to be met.

Home Inspection

The seller is required to disclose the current state of the property to any prospective buyers. The buyer, on the other hand, always has the home examined by a third party in order to obtain a better understanding of the overall condition of the home. Inspection contingencies provide the buyer with an opportunity to discover any significant structural faults that were not previously revealed. The buyer might then opt to back out of the transaction or use the results as a bargaining chip in the sales price negotiations.


Despite the fact that purchasers obtain pre-approval for financing prior to placing an offer. However, there is no assurance that the buyer will be accepted for a loan at this time. The lender conducts a comprehensive evaluation of the loan application and reserves the right to reject it even after it has gone through the pre-approval procedure. With this in mind, it may be beneficial to add an indemnification or mortgage contingency in your offer to the seller.

Home sale

Typically, upgrading entails purchasing a larger residence. The majority of people want to sell their present residence before purchasing a new one. A home sale contingency means that the offer on the new house will only be good if the home sale goes through. As long as the seller successfully sells their present residence within a certain length of time.


An appraisal contingency states that the agreement is only good if the property’s market worth is equal to or greater than the sum agreed upon in the contract. This contingency is frequently mentioned in house loan applications since lenders have the right to reject a loan application. If the property is worth less than the sales price mentioned on the contract, the deal will be terminated.


Finding the house of your dreams requires a combination of luck and perseverance. It might be quite disheartening to discover that the property you’ve been eyeing is already under contract and active. However, everything is not lost for you in this situation. Despite the fact that the seller has accepted the buyer’s offer, there is no certainty that the transaction will proceed to completion. There is still a reasonable danger that one or more of the conditions will not be met, resulting in the buyer pulling out of the transaction.

This is one of the reasons why sellers examine other offers. Don’t let the fact that a home is currently under contract prevent you from submitting an offer on the property. It’s possible that your offer will be considered as a backup offer by the seller if an earlier offer fails to materialize.

‘Active Under Contract’ Property Status: Everything You Need to Know

Tony Mariottion has posted a message. 2:23 p.m. on Wednesday, March 21, 2018 Posted on March 21, 2018 by Tony Mariotti Comment When a real estate property (such as a single family house, condo, townhome, or other similar structure) is listed for sale and the seller accepts an offer from a buyer, but the transaction has not yet completed, it is referred to as being “active under contract.” This phrase is most frequently heard in the state of California.

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When a property is listed on a Multiple Listing Service (MLS), its status is set to “Active.” Once an offer is accepted, the status is changed to “Active Under Contract,” which remains in effect until the transaction is completed or terminated.

MLS Listing Statuses Displayed

There are three different sorts of listing statuses available on RubyHome: active, pending, and under contract.


In the event that a real estate broker or agent accepts a listing (and so enters into a contract with a seller to advertise their home), they will prepare a property description and publish it to a local or regional multiple listing service (MLS). At that moment, the property is officially listed for sale and may be viewed by other agents by logging into their respective Multiple Listing Services (MLS). At this point, the status is set to Active. A few minutes later, the new listing is sent to agent- and broker-owned websites (such as RubyHome), which get a direct data feed from the Multiple Listing Service (MLS).

It is not automatic or instantaneous that listings be delivered to large portals such as Zillow or Trulia, which explains why these giant websites contain fewer listings and less reliable status information than smaller websites.

Active Under Contract

When a buyer submits a contractual offer, and the seller accepts it, the listing status is changed to “Active Under Contract.” This is the most common situation. The written offer creates a legally binding agreement that, in effect, takes the property off the market since, a) it prohibits the seller from entering into another contract for the same property with any other party, and b) it forces the buyer to make the down payment on the house. However, practically every real estate contract has contingencies, and the transaction will not close until all of the conditions – as specified in the contract – have been met.

  • As a result, the property remains on the market and accessible via the internet.
  • If the market is typical, the normal length of the closing stage (also known as the contingency phase) of a real estate transaction can range from a few days to several weeks, with an average of around 30 days under normal market circumstances.
  • Because the listing status is still Active Under Contract, the seller is unable to engage into another contract for the same property with a third party while the listing status is still Active Under Contract.
  • Backup offers are simply placeholders for the buyer(s) who will come behind them in the queue.

Backup offers are rather common in hot real estate markets where inventory is low and demand is high, and they are usually accepted.


When a house is in the escrow phase, it means that all contingencies have been satisfied and that the final paperwork, signatures, and distribution of monies have been completed. Under Contract vs. Pending: What is the difference? As previously stated, an Active Under Contract period might run anything from a few days to many weeks. A status of Pending is normally only active for a brief period of time, typically only a day or two. Furthermore, because pending transactions nearly always shut (a very, very high proportion of the time), they are extremely unlikely to be available.

That’s one of the most compelling reasons to sign up for email notifications/listing alerts: you’ll automatically remain on top of the latest properties for sale in Los Angeles as they become available.


Sold (or Closed) properties are no longer available for purchase. The majority of consumers who browse for recently sold listings are in the process of intending to sell their property and are interested in knowing the pricing of recently sold, comparable properties to their own. In the event that you’d want to find out how much your house is worth, we’d be pleased to prepare a free Comparative Market Analysis (CMA) report for you utilizing MLS data and more advanced technologies on your behalf.

Real Estate Listings Status FAQs

Why not simply remove the property from the Multiple Listing Service (MLS) when the first offer is received? It is possible that a contract will fall through, thus it is in the seller’s best interests to continue actively marketing his or her property. The prudent strategy is to keep it exposed to the widest possible range of potential purchasers at any one time. The smart course of action is to seek out alternative possible purchasers in the event that the existing deal does not go through as planned.

  1. It is dependent on the situation.
  2. They may not want to be bothered, or they may be preparing for their relocation at the time.
  3. It is also important to remember that visiting properties that are under contract is not the most efficient use of your time because the majority of properties that reach this stage will be sold.
  4. What is the maximum amount of time a residence may stay a property under contract?
  5. It takes time to settle the financing and eliminate contingencies through the use of appraisals, inspections, and other methods.
  6. Yes, you are welcome to make an offer.

‘In Escrow,’ stated a yard sign that I came upon. What exactly does this mean? Depending on the state, location, and local real estate market, the real estate vocabulary used on yard signs (and websites) will differ. Here are some examples of synonyms organized by region:

  • Active Under Contract (California)
  • In Escrow (Multiple States)
  • Active Contingent (Texas)
  • Active Option Contract (Texas)
  • Sale Pending (Multiple States)
  • Active With Contract (Florida)
  • Pending Taking Backups (Texas)
  • Pending (Multiple States)
  • Contingent Bumpable (Oregon)
  • Contingent Bumpable (Texas)
  • Active With Contract (Texas)
  • Active With Contract (

What Does Active Under Contract Mean?

Contractual obligations are active, pending, contingent, and option periods are in effect. – Definitions for these listed phrases are provided in this guide, which will assist you in better understanding what they signify. The world of real estate may be bewildering at times. Sometimes, purchasing a property (especially if you are a first-time buyer) may be a difficult experience in which you are forced to make sense of crucial terminology that you have never heard before. While your real estate agent should be able to explain these terms to you in a way that you can understand, it’s critical that you go into a purchasing (or selling) scenario with a decent, basic awareness of the keywords and phrases you’ll likely encounter over the course of the transaction.

When you initially contemplate seeing a house, you may come across words such as “active under contract” or “pending,” which indicate that the property is under contract.

What does active under contract mean?

It is helpful to begin by breaking down the word “active under contract” in order to completely appreciate what it means. A listing that has been put on a local or regional MLS (Multiple Listing Service) and is officially available for sale is referred to as being in the “active” position in real estate terminology. When a listed property becomes active, other agents can log in and see the property through the Multiple Listing Service (MLS), and they can begin showing the home to potential purchasers.

Whenever a bidder submits an offer that the seller agrees to in a written contract, the listing’s status changes to “active under contract.” This is the stage at which the contract between the buyer and the seller prevents the seller from agreeing to sell the property to anyone else, and it also binds the buyer to their commitment to purchase the home.

Typically, these conditions involve items such as the buyer’s financing, house inspections, and appraisals being completed before the sale can be finalized.

If this occurs, the property will remain active on the MLS but will no longer be under contract, allowing other bidders to swoop in and make bids on the property.

Can you make an offer on a house that is under contract?

What happens if you locate your ideal house, but the property’s status is marked as “active under contract” when you go to see it? This is a predicament that many individuals find themselves in, especially if the home they are interested in is really desired. The good news is that if you fall in love with a property that is currently under contract, you do not have to back out. As long as a property is active and under contract, a seller is prohibited from entering into another contractual arrangement with a different purchaser.

Other potential buyers can still see houses that are currently under contract while they are still active.

Many people who are selling their homes are aware that sales can fall through at various points throughout the selling process, and they will continue to show a property in anticipation of the possibility that contractual contingencies will not be met in the future.

Sellers who have received an offer and moved to the contract stage of a sale but who wish their selling agent to continue marketing the property in order to obtain back-up offers can instruct their selling agent to maintain their home as active under contract on the Multiple Listing Service (MLS), as shown in the example above.

Despite the fact that there are still contractual stipulations that must be met, the realtor will cease marketing and showing the property to other possible purchasers at this time.

Active under contract vs. pending.

It’s wonderful news for both the buyer and the seller when a contract is successfully completed, and the property’s status changes from “active under contract” to “pending.” An active listing on the Multiple Listing Service (MLS) indicates that the property’s sale has entered the escrow phase. During this period, the last phases are in the process of being completed. The final documentation is completed, and the money are sent as soon as they are received. As long as the seller and their agency agree, a buyer’s representative can take their clients to any house on the market.

  • Many individuals opt not to tour a house that is currently on the market for fear of falling in love with it and then being disappointed when the house sells later down the road.
  • The fact is that, while a selling agency would often refuse to take offers on a home that is currently under contract, a buyer’s agent can contact the listing agent and inform them that they have a client who is enthusiastic and interested in the home.
  • Keep in mind that every situation is unique, and the outcome is frequently dependent on both the buyers and the sellers.
  • It’s important to consult with your agent on a case-by-case basis, since it is their responsibility to do all in their power to get you into the house of your dreams.

What is an active option contract?

An active option contract is a word that is used when a seller has accepted a buyer’s offer, but the transaction is still in the “option” or inspection period that was agreed between the parties. Most active option contracts provide the buyer with a few days to view the property and the ability to terminate the contract if he or she does not like it. Contingency periods and due diligence periods are terms that are often used in conjunction with active option contracts in numerous industries, and they are comparable in many ways.

The Meaning of Active Under Contract Explained

In certain jurisdictions, the term “active under contract” refers to a contract that has been signed but is subject to the fulfillment of specific criteria before the transaction may be completed.

When the sale is contingent in the multiple listing service, it is referred to as contingent in other areas (MLS). When looking at a house that is currently under contract, there are a few things you should be aware of, which we will go over in detail below.

  • Certain requirements (such as a completed property inspection) must be met before the transaction may be finalized. If a buyer buys an ancient house, this will advise to him or her where the money should be spent initially. If there are expensive concerns to repair, it may be necessary to negotiate a lower price before moving further. A contingent offer from the purchaser has been accepted by the seller, but there is always the possibility that the transaction will not proceed. This time period allows the seller to receive backup bids from other interested parties
  • However, this is not a requirement.

If you are interested in a property that is currently under contract, keep in touch with the selling agent so that you will be prepared to act if the sale breaks apart due to the failure to meet the terms of the contract’s contingencies. This is distinct from the concept of pending in real estate, which often denotes that all of the buyer’s contingencies have been met before the sale may be finalized. Homes are frequently categorized as “pending” on the multiple listing service when a real estate agent is confident in his or her ability to close the deal.

Contingencies When a House is Under Contract

A buyer will include real estate conditions in the agreement in order to protect themselves legally and financially, as the transaction is not complete until the contract is signed and accepted by both parties. This can add some time to the procedure and will provide the buyer the opportunity to resolve a few outstanding difficulties, such as, for example,

  • HOME INSPECTIONS: to look for potentially pricey hidden building faults or environmental risks in the home before purchasing it. There are a variety of different examinations that may be performed, including a property survey, radon testing, mold testing, and septic testing if there is no public sewer accessible. Anything substantial discovered may result in the deal not being completed. FINANCING: Enabling the purchaser to acquire a mortgage before the house transaction is completed is referred to as financing. If the lender does not agree to fund the loan, the sale is canceled. HOUSES SOLD: This contingency allows purchasers to walk away from the purchase if they are unable to sell their existing house. WHERE TO FIND APPRAISAL: A successful appraisal is required for this contingency. It is not possible for the value to be lower than the purchasing price. If it is lower than expected, the buyer may be able to negotiate a lower price, cancel the contract, or make up the difference by putting a greater down payment down on the property. Some of the most important things to know regarding real estate evaluations are as follows:
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Escalating property values and appraisal issues are prevalent in real estate areas where home values are increasing rapidly. Occasionally, the data that the appraiser is working with has not caught up with the current state of the market. Other instances, an appraiser may make a clerical error that results in a lesser valuation than it should have been. If you are buying or selling a home, you will need to examine the situation and make the best option for your particular circumstances. A buyer may have overpaid for a home, and the appraiser may be doing them a favor by assigning a lower assessment than the home’s selling price.

Active Under Contract vs. Pending

In the world of real estate, these are two whole distinct things. Both expressions are used when a seller has accepted a buyer’s offer, indicating that both parties have entered into a binding contract. The term “active under contract” refers to the fact that some contingencies are still unsettled. The term “pending” indicates that the transaction is getting closer to completion. The definitions provided by individual multiple listing services that are part of a geographical region, on the other hand, are not always obvious, and they might differ from one another.

It is possible that not all regions will have active under contract status, and that some areas will transition from “active” to “pending” totally, skipping over the active under contract stage.

Making an Offer on a House Under Contract

While it is feasible to make a backup offer on a house that is currently under contract, it is important to remain objective and avoid being emotionally attached in the purchase of the property. The fact is that if all of the circumstances are satisfied, the transaction will go through, and you will be left on the outside looking in. Consequently, the best advise from the experts is to continue looking at any other appropriate properties throughout the active under contract time, even if you have already sent a backup offer to the seller.

If that occurs, you will be prepared and will not make any additional emotional investments in the property unless you are positive that you will be able to obtain it.

Remember that while an ancient property may be attractive, if it requires several expensive repairs, it may not be a good investment, especially if you have invested all of your hard-earned money into the acquisition.

Homes Come Back on The Market All The Time

When it comes to buying a property, patience is a characteristic that might be really beneficial. It is possible for home transactions to fall through for a variety of reasons, ranging from title challenges to undisclosed easements to a buyer encountering financial difficulties. Make sure to keep your eyes on the prize since you could still be able to purchase your ideal property.

The Bottom Line on Under Contract Homes

Being emotionally engaged in a property that is currently under contract isn’t the worst thing that can happen, and if you are a risk-taker, you will understand that it is possible that the deal could go through. Consider the meaning of the word “active under contract,” for example. The seller has already accepted an offer and is waiting for the conditions to be satisfied before proceeding with the transaction. The fact is that they will very certainly be fulfilled, and the property will be sold.

Set yourself a weekly goal of inspecting 5 properties in the neighboring suburbs to keep your mind off of it.

This is a useful diversion that may result in you finding a house that you like even better.

Just make sure you don’t write numerous offers on various houses and end yourself in a muddled situation.

Re-visiting Active Under Contract and Pending

Due to an increasing demand across our market region, MARIS consolidated listing statuses and amended criteria in January. Since then, we’ve been keeping an eye on use patterns, and we’ve discovered a chance to better clarify the definitions of the active under contract and pendingdefinitions. These definitions are intended to provide a high-level knowledge across a wide range of marketplaces , contract types and sizes. The Uncomplicated Truth. Ultimately, we know that sellers will always direct their agents to either continue promoting and showing a property in an effort to acquire a backup offer or to discontinue marketing and proceed with the closing process.

  1. As your MLS, it’s critical that we provide sellers the option to continue selling their home while also informing purchasers if there is a kick-out or not.
  2. The real estate community as a whole benefits from reliable data, which includes the status of active listings.
  3. Contractually Obligated to Be Active We emphasized this position even further by emphasizing the word’seller,’ because we understand that this is a status that is entirely focused on marketing.
  4. When a property has an accepted contract, the seller has directed their agent to continue marketing and showing the property in an attempt to acquire a backup offer, the property is considered Active Under Contract.
  5. Properties having an accepted contract but with a contingency that may allow the seller to terminate the present contract in favor of a backup contract are considered for this category.
  6. The seller has asked the listing broker to continue selling the property in order to acquire a backup contract for properties that have been accepted under contract, regardless of whether or not the present contract may be terminated.
  7. Pending Defined is a pending definition.
  8. With the contract still outstanding, the seller has said that they are satisfied with the terms of the agreement and do not wish to exhibit or advertise the property any more.
  9. inspections, financing, etc.).
  10. As a market leader, we maintain business relationships with the most popular syndication websites and are on the lookout for developing trends in the industry on a regular basis.

For the most up-to-date mapping information, we recommend you to review our support page. This will allow you to see how our current statuses transfer to the leading syndication sites.

Active Under Contract (Best Overview: All You Need To Know)

What exactly does “active under contract” imply? What is considered active versus spending under a contract? What is the difference between the various MLS listing statuses? We will examine the definition of active under contract, answer the question “what does active under contract imply,” examine the different MLS listings such as ” active “, ” active under contract “, ” pending “, or ” sold “, compare sale pending versus under contract, and much more! Make sure to go through this entire post since we have some fantastic material for you!

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What does active under contract mean

It is common in real estate to use the term “active under contract” to signify that an accepted offer has been made for a property, but that the real estate transaction has not yet been finalized and closed. The sale of a real estate property can be categorised into the following categories according to the Multiple Listing Services (or MLS), which represents the real estate broker listing database: Each of these groups provides prospective purchasers with an idea of the current state of the property selling transaction.

  • If the seller accepts an offer with conditions, the status of the transaction will eventually be changed to ” active under contract “.
  • Once the real estate transaction is completed and the deed of sale has been signed, the property will be categorized as ” sold ” and will be removed from the market.
  • However, in the meanwhile, the seller has the option to continue showing the property to other prospective purchasers and even take backup proposals, provided that the accepted offer is still on the table.
  • However, if the contingencies are not resolved in accordance with the conditions of the accepted offer to purchase, the seller has the option of relisting his or her property on the market or proceeding with the next backup offer in the line of succession.

Active under contract definition

You might be asking what it means to be “active under contract” or what it means to be “active under contract” in the context of real estate. Contractors are in charge of the work. This phrase is used in real estate to assist buyers and sellers in making more informed judgments and ones that are more beneficial to them. When a property is posted on the Multiple Listing Services with an accepted offer, it is said to be “active under contract.” This means that the property is still accessible for marketing, showings, and visits in an attempt to locate backup bids.

MLS Listing status

Examine the many Multiple Listing Service (MLS) statuses that a property may have from the time it is listed all the way up to the time it is sold.


Any property owner who engages the services of a real estate agent or broker to sell his or her property will have his or her property listed on the Multiple Listing Service (MLS). When a property listing is placed in the Multiple Listing Service (MLS), the property is essentially put on the market and will have a “Active” status on the MLS.

Active under contract

Whenever a real estate agent gets a written commitment to purchase from a buyer that the seller accepts, the accepted offer will have an influence on the property’s listing on the Multiple Listing Service (MLS). The property will transition from its current active state to its current under contract status. It is possible that the accepted offer to purchase will contain contingencies or conditions that must be met before the sale can be considered firm and final. In this case, the property status will be displayed as active under contract to indicate to prospective buyers that the property is under contract or that an accepted offer has been received.

  • Home inspection, home appraisal, bank financing, title search, and attorney review are all possible options.

For the duration of the active under contract term, the real estate property remains on the market and accessible for viewing by other potential purchasers. In real estate transactions, the contingency period can extend anywhere from a few days to many months, depending on the nature of the deal itself. A property under contract with kick-out permits the seller of a property to “kick out” a bidder who has conditions in favor of another offer while the property is still under contract.


It is legally sold and goes into the pending state if either a buyer submits an offer to acquire a property without any conditions that the seller accepts or if all of the contingencies of an accepted offer are satisfied. Depending on the situation, the pending categorization might be “pending showing for backup” or “pending subject to lender approval.” In the MLS pending status, it signifies that the property has been sold and is now in the escrow phase, during which the parties will complete all of the necessary documentation to finalize the sale and close the transaction.

  • Contract documentation
  • Contract signings
  • Funds disbursement
  • Title registration

Potential buyers will no longer be shown properties that have been labeled as having a pending status by real estate agents and brokers.


When the property status is changed from “for sale” to “sold” in an MLS listing, this is the last stage. When a property is classed as sold, it means that the property has been sold and that all legal contracts and documentation have been completed and signed by the buyer. The property will be removed from the Multiple Listing Service (MLS) system as well as the market.

Under contract vs pending

What does it indicate when a property is active under contract as opposed to being in pending status?

What is the difference between being active under contract and being dependent under contract? A property with a contract status is a property that meets the following criteria:

  • Has a seller-accepted offer been submitted
  • Showings are permitted by the seller. The real estate agent is actively marketing his or her property
  • It is still possible to earn Days on Market (DOM) and Cumulative Days on Market (CDOM).

A property with a pending status is a property that meets the following criteria:

  • Has a seller-accepted offer been submitted
  • All of the offer conditions have been satisfied. Escrow has been opened on the property, and it will remain there until the real estate transaction is completed. Currently, the seller is not allowing any further showings. The real estate agent is no longer in the business of marketing. It is no longer possible to accumulate Days on Market (DOM) and Cumulative Days on Market (CDOM).

A “contingent property sale” is a property that is now “active under contract.” To put it another way, while you can make a backup offer on a property that is currently under contract, you should bear in mind that your offer will be subject to the terms of the accepted offer with contingencies, if one is accepted. Providing that all of the circumstances are fulfilled, the property will be sold to the original purchaser. If, on the other hand, the purchase offer is rejected, the seller will go to the next backup offer in line.

Offer on an active under contract home

Many people wonder if they may make an offer on a property that is currently under contract. The answer to this question is yes, it is conceivable, if the seller accepts more proposals from interested parties. When you see a property listed as “active under contract,” it almost often implies that the seller has accepted a formal offer subject to certain conditions (such as financing). What should you do in this situation? Should you make an offer to the seller? Will it be a complete waste of your time to do so?

But if all of the conditions of the accepted bid are satisfied, the property will be sold to someone else.

It all boils down to this: you “can” submit an offer, but you shouldn’t get your hopes up too much because your offer will only become effective if the first continent offer fails to materialize.

Active under contract contingencies

What are the most typical sorts of contingencies that cause a currently active property to be placed under agreement? It is possible for a seller to agree to the terms and conditions of a pledge to purchase, but the buyer’s commitment is conditional or contingent on the occurrence of specific events. This is known as an accepted offer with contingencies. The following are the most often encountered contingencies:

  • Home inspection contingency, mortgage contingency, appraisal contingency, and home sale contingency are all examples of contingencies.
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A house inspection contingency is the buyer’s decision to inspect the property in order to guarantee that it satisfies a minimal level of quality that is acceptable to him or her before making a decision to purchase it. Following an inspection, if specific property flaws or difficulties are discovered, the parties may decide to revise the terms of their offer in order to account for the prospective costs associated with the issues that were discovered. There is no need to explain what the mortgage contingency is.

Thus, obtaining bank financing or a mortgage is considered normal in real estate transactions as a condition of closing.

Another type of contingency is the house sale contingency, which occurs when a buyer who currently owns property inserts a condition that the purchase of a new property must be contingent on the sale of the buyer’s present property.

Most of the time, the parties will agree on a certain time frame to guarantee that this contingency is satisfied.

Listing terminologies

Various states utilize different language when it comes to listing real estate. The “active” and “sold” statuses are straightforward to comprehend. As a result, we’ll skip the rest of the explanation. The following terms, however, may be misleading to certain people, among other things:

  • Active Under Contract
  • In Escrow
  • Active Contingent
  • Active Option Contract
  • Sale Pending
  • Active With Contract
  • Pending Taking Backups
  • Pending
  • Contingent Bumpable
  • Active First Right
  • Active Kick-Out
  • Active No Show
  • Active

Different states use different terms to express the marketing status of a property or the availability of a property on the market under different situations. In the case of an active option contract, the seller accepts a buyer’s offer while the transaction is in the process of being reviewed by the buyer. Buyer has a limited amount of time during the option period to exercise his or her right to terminate the contract. The buyer’s choice period is analogous to a sale contingency in that the buyer must either conduct an examination and finally declare the property to be satisfactory or withdraw his or her offer to purchase the property.

What does “Active Under Contract” Mean? – Marc de Longeville

Consider the following scenario: In the Beach Cities, you’re on the lookout for a new place to call home. Homebuyers in Manhattan Beach and Redondo Beach are actively searching for properties for sale online and driving around communities that appeal to them, according to you. Finally, you come across a few of properties that you think are worth checking into, and you’re filled with optimism. A sign that reads “under contract” greets you just as you’re ready to contact the agent or knock on the door to ask enquiries about the house you’ve chosen as your dream home.

  1. What exactly does it mean?
  2. Should you just restart your search for a home and expand your horizons to include other properties?
  3. It is not the end of the world.
  4. But, before you make your decision, let’s first define what the word “active under contract” means, and then look at a few alternative situations to help you understand what to expect if you decide to continue your pursuit of this particular property.
  5. Let’s get this party started.

Active under contract: what does it mean?

There’s no reason to be concerned when your ideal house has a sign out front that says it’s active and under contract. The purpose of this document is to inform other prospective house buyers that an offer has been made and that the seller has accepted it. The transaction is not finalized, and the house is still on the market, open to other bids, unless there is a condition in their contract to the contrary, according to the realtor. Consider it as a form of insurance for the vendor. In the event that the original offer they accepted does not go through, they have a number of alternative offers to evaluate.

  • What stage does it occupy in the home-buying procedure?
  • First and foremost, you hunt for a property that interests you.
  • The third phase is entirely dependent on the seller, who may accept or reject your offer at any point.
  • Detailed descriptions of both buyer and seller expectations and duties are included in this agreement.
  • Once both parties have signed the sales contract, the property is regarded to be “under contract” and hence “active.” In the meanwhile, as you and the seller work to meet the stipulations, the seller’s agent may continue to receive bids and display the property to potential buyers.
  • Let’s pretend that all of the variables have been eliminated and all of the conditions have been met.
  • At this point, the residence is no longer under contract and is no longer available for rent.

The sign will be changed from sales pending to sales pending. Back-up bids are less likely to be accepted by the seller these days, but it truly relies on what has been agreed upon between them and the buyer.

Frequently asked questions

Can the seller still show a house that is under contract? Yes. The seller is under no obligation to stop showing their house to interested buyers or from entertaining other offers. It only becomes an obligation if the seller and buyer agrees to shop showing the property while it’s under contract. Furthermore, although the seller can entertain backup offers while the property is under contract, theycannot enter another contract with a different buyer. Can I make an offer on a house under contract?

  1. There are many ways a real estate transaction can fall through, so don’t give up on your dream home just because it’s under contract.
  2. There is also no guarantee your offer will be accepted if such a thing happens.
  3. How long can a house be under contract?
  4. It’s a specific time frame where both parties have to fulfill their ends of the bargain.
  5. Meanwhile, the buyer has to finalize their loan.
  6. Sometimes, the buyer or the seller asks for more time to remove certain contingencies.
  7. But usually, a house can be under contract for a month, give or take a week or two.
  8. They can for a variety of reasons, but most usually it’s because one party or the other wasn’t able to fulfill or remove contingencies.
  9. Sellers can also back out of a contract because of the following:
  • In the end, the house assessed for far more than the buyer’s offer. A better offer came in from another buyer
  • The seller is having difficulty finding or relocating to a new house. They have had an emergency (for example, a death in the family) that has rendered them unable to relocate
  • There is disagreement among the family concerning the transaction
  • Yet, the sale is finalized.

Are there any repercussions for sellers who choose to back out of their separate sales agreements? Yes. Customers have the right to take them to court and sue them for breach of contract if they do this. It is possible that sellers will be compelled to repay the earnest money deposit (plus interest), reimburse the purchasers for contingency-related fees, and compensate the listing agent for the services done. What is the point of keeping the house on the market after receiving the first offer?

The fact that transactions don’t always go through is something we’ve talked about before.

One of the most effective and practical methods for a seller to still assure a successful sale is to keep their property listed on the Multiple Listing Service (MLS) until the transaction is completed.

Related terms to get acquainted with

It is quite possible that you may come across the phrase “active under contract” in conjunction with other relevant phrases, the most often occurring of which are “active,” “pending,” and “sold.” At first sight, they appear to be simple enough to comprehend, yet there is often more to them than what meets the eye.

Let’s take a deeper look at each term in order to better comprehend their own complexities.


If you come across a home that you like that is also classified as “active,” it signifies that it is completely and completely available for purchase at this time. Having said that, there are several definitions of “active,” and what they imply will vary depending on the local real estate market. Fortunately, some sorts of “active” statuses are more often used than others, allowing for greater flexibility. Here are a number of phrases that are frequently used, along with their commonly recognized definitions:

  • Contingent on Being Active When a residence is labeled as “active contingent,” it signifies that an offer has been made and the seller has accepted the offer. Sounds similar, doesn’t it? This is due to the fact that a house labeled as “active contingent” is also under contract at the same time. Consider this new status as an additional layer of protection. When a residence is characterized as “active contingent,” it means that a condition or two must be met within a certain amount of time in order for the transaction to move forward. If that condition is not satisfied, the transaction will be deemed a failure. There are no ifs or buts about it. You can make an offer on a house that is “active contingent,” meaning that it is still available. Unless the previous offer is accepted, the new offer will take precedence over it if the transaction does not go through. Active – The First to Act It is similar to under contract and active contingent in that the seller has accepted an offer and executed an agreement with the buyer. A home listed as “active – first right” is identical to a house identified as “active – second right.” Other bids may still be entertained by the seller, but the first accepted offer takes precedence over all others. The buyer who submitted that offer is given the opportunity to match or enhance their offer in response to the following offers: Kick-outs that are active If you are looking for a house with the “active kick-out” status, it has much of the same characteristics as a property that is active, with the exception that the contingency is that the buyer must first sell their present home within a defined deadline. Only once this condition has been met can the transaction be completed successfully. One of the characteristics of the “active kick-out” status is the seller’s ability to effectively kick the initial buyer out of the transaction if another qualified buyer submits an offer that fits the requirements. Of course, the seller cannot simply refuse to sell to the first buyer. In order for a residence to be designated as “active kick-out,” the kick-out clause must be included in the sales contract. There are several different active status categories, and each one requires agreement from both sides. No Show – Active – No Show Did we mention that residences that are actively under contract might be closed to showings? Well, that was the case. There is a “active – no show” designation for these properties. In such circumstances, both the buyer and the seller have agreed that the residence would not be open to the public. If this is the case, it might be throughout the full life of the transaction or merely for specified intervals. Despite the fact that the house is not open for viewings, it should be noted that it is still on the market and available for purchase.


When a property for sale has a “pending” status, it indicates that it is farther along in the home-buying process. There has been acceptance of an offer by the seller, and all of the contingencies have been satisfied. In certain instances, there are absolutely no contingencies in the deal. In the same way that a property under contract is inching closer to closing, a house that is classified as “sales pending” is already in the escrow stage of the buying process. Payments and disbursements are done at this point once the final documentation has been reviewed and signed.

As a result, you may come across some sellers who are still open to accepting offers at this point in the process.

  • Currently pending, with a backup display. If a property’s sale is still pending, but the seller has chosen to continue showing it to prospective buyers, you’ll see this indication on the listing’s detail page. In addition, the seller has the option to accept backup bids in case of a dispute. The application is pending, and it is subject to lender approval. If you notice this indication or symbol on a property, it indicates that the sale is conditional on lender clearance before it may proceed. Essentially, the seller has accepted the offer, the property is under contract, and the transaction will most likely close if the buyer’s preferred lender agrees to the terms of the transaction. What happens if the buyer’s bank refuses to accept the offer? As a result of the failure of the transaction, the property will be placed back on the market as an active listing.


Sold houses are simply that: they have been sold and are no longer on the market. Some listings will have a notice or symbol that reads “closed” on them instead of “sold,” which indicates that the listing has been sold. Making a bid on these properties is pointless at this point, although they may still be of some service to you in the future. When determining a price range for houses for sale in Manhattan Beach and Redondo Beach, it is a good idea to check at previously sold properties in the neighborhood to get a sense of where you are starting from.

In order to do a comparative market study, recently sold properties in the vicinity are often analyzed.

What have we learned today?

Don’t give up hope the next time you come across a prospective dream home that has been tagged as under contract. Consult with your real estate agent to determine what measures you should do next. Additionally, contact the seller’s agent to find out the current status of the sale and determine whether or not it is still worthwhile to submit an offer. But first and foremost, it’s important to thoroughly investigate all of your real estate possibilities. I, Marco De Longeville, will take you on a tour of Manhattan Beach waterfront houses for sale and Redondo Beach homes for sale in California.

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