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When you hear that a house is going under contract, it typically means that a buyer and seller have entered into a legally binding agreement for the sale of a home. This is an exciting time for both parties involved, as the buyer has found their dream home and the seller is one step closer to closing the deal.

But what exactly does it mean when a house is going under contract, and what should you expect during this process? Let`s take a closer look at what happens when a house is under contract.

The Contract Process

Before a house can go under contract, the buyer typically makes an offer to purchase the home. This offer may come in the form of a letter of intent, a purchase agreement, or a contract. The seller can then accept, reject, or counter the offer.

If the seller accepts the offer, the home goes under contract, and both parties sign the contract, making it legally binding. This is when the due diligence period begins, where the buyer has a specific amount of time to conduct inspections, secure financing, and review other details related to the purchase.

During the due diligence period, the buyer has the right to terminate the contract without penalty if they uncover any issues with the property or cannot secure financing. Additionally, the seller may also have the right to terminate the contract if the buyer does not fulfill their obligations outlined in the agreement.

Closing the Deal

Assuming everything goes smoothly during the due diligence period, the next step is closing the deal. This is when the buyer and seller sign all the necessary paperwork to complete the sale of the home.

During this process, the buyer will typically provide the necessary funds for the sale, the seller will transfer ownership of the property, and the title company will ensure that all legal requirements for the sale have been met.

Once the sale is complete, the buyer officially owns the home, and the seller receives the proceeds from the sale.

In conclusion, going under contract is an important milestone in the home-buying process. It signifies that both parties have agreed to the terms of the sale and are moving one step closer to closing the deal. As a professional, it’s important to emphasize the excitement and importance of this process, while also providing clear and concise information to help readers understand the process.