What does "under contract" mean?

The term "under contract" indicates that a property has an accepted offer, meaning that the buyer and seller have reached an agreement on the sale terms, and both parties are legally bound to the transaction. This status signifies that the seller has accepted the buyer's offer, and both parties have signed a contract outlining the specifics of the sale. At this stage, the property is typically taken off the market to allow the transaction to proceed, though there may still be contingencies that must be resolved before the sale can be finalized.

Understanding this concept is crucial in real estate, as it highlights a critical phase in the buying and selling process where both parties are committed to completing the agreement, pending any stipulated conditions like inspections, financing, or other contingencies.