Silver Spring, MD Home Buyer FAQ: What does "under contract" mean?

By
Real Estate Agent with Thompson Company, REALTORS® MD594797

Real Estate professionals who are a little house-obsessed use abbreviations and specific Real Estate lingo daily that sometimes confuses consumers and clients because there are regional differences and/or because they are simply not familiar with the process. Neither are a problem, we are here for you!

Home For Sale in Silver Spring: Under ContractUnder contract, for example, is called in escrow in other parts of the country.. but what exactly does it mean when you are under contract? It does not mean that you "just bought a house", not yet anyway. It means that you and the seller have come to an agreement, the seller has accepted your offer - or you have accepted the seller's counter offer - and you have ratified a Residential Contract of Sale. When you are under contract, you are on your way to settlement, to close on the sale of your new home and to being able to say "I just bought a house"!

It's an exciting moment (especially if you have prevailed in a multiple offer situation) and process. Being under contract means that the house-hunt is over but there are a bunch of hurdles that need to be cleared, many are contract contingencies.

There are inspection contingencies (general home inspection, radon inspection, well/septic inspection, chimney inspection, pool inspection, lead-based paint inspection, mold inspection), financing and appraisal contingencies, selling another home or finding a home of choice-contingency ... then there is the wood destroying insect inspection (commonly referred to as termite inspection although it covers more than "just" termites), the title examination, the final walk-through. When all contingencies have been removed and all conditions have been satisfied, the lender will issue the "cleared-to-close" and you will go to settlement, sign a stack of final papers and will be able to celebrate the fact that you are no longer under contract but that you just bought a house! 

By the way, Maryland is - what we call - a "wet state". That means that the loan has to be funded the day of settlement and that you'll receive the keys to your new home that same day (provided that there is no seller rent back). 

Silver Spring, MD Home Buyer FAQ: What does "under contract" mean? 

In short, under contract covers the entire period from the moment a Residential Contract of Sale was ratified, to the clearing of each and every contract hurdle, to the settlement table on Happy Closing Day! 

Posted by

ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~

 

 

   

                                                                                                              

 

Thompson Company, REALTORS
16910 Oak Hill Rd, Silver Spring, MD 20905
o: (301) 384-9177 c: (240)593-2860

andreabedard.re@gmail.com

Andrea is a REALTOR® based in Silver Spring, MD. She has enjoyed assisting buyers and sellers since 2004 and focuses on residential Real Estate in  Montgomery and Howard County, MD. Andrea is a proud mom and hobby decorator with a vintage soul. She always answers the phone with a smile, enjoys running and treasure hunting and is addicted to coffee.

 

 All photographs are my own and I'd like to keep it that way. All information is deemed reliable but not guaranteed.

 

 

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Topic:
Home Buying
Location:
Maryland Montgomery County Silver Spring
Groups:
1st Time Buyers
Buyer Information - What Buyers Need to Know in Today's Market
Advice for Buyers
Tags:
silver spring home buyer faqs
what is the difference between under contract and in escrow
what are contract contingencies
frequently asked questions home buying process in maryland
montgomery county buyers agent

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Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Andrea Bedard - it is the first step whether it is under contract, in escrow, or pending.

May 13, 2019 03:37 PM #1
Rainmaker
698,680
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

A giant first step towards the finish line Grant, and an exciting one - be it the first time or second or fifth..

May 14, 2019 06:09 AM #2
Rainmaker
4,001,552
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Andrea, you bring up a great point, we have to remember the general public does not know our lingo.

May 20, 2019 10:29 AM #3
Rainmaker
698,680
Andrea Bedard
Thompson Company, REALTORS® - Silver Spring, MD
M.A.; REALTOR® Silver Spring, MD and beyond

Our lingo can get confusing to the consumer. I think it's important to explain all step-by-step. There are no silly questions in Real Estate and my clients can never ask too many!

May 21, 2019 06:12 AM #4
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Rainmaker
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Andrea Bedard

M.A.; REALTOR® Silver Spring, MD and beyond
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