What Is the Difference between under Contract Option Pending and under Contract Pending

When it comes to real estate transactions, the terms “under contract option pending” and “under contract pending” may appear confusing to those who are not familiar with the industry lingo. However, these terms are essential to understand as they can have significant implications for both buyers and sellers. In this article, we`ll explain the difference between “under contract option pending” and “under contract pending.”

Under Contract Pending

“Under contract pending” is a term used to describe a real estate transaction where the seller and buyer have agreed on the terms of the sale, and both parties have signed a purchase agreement. At this point, the property is considered “under contract,” meaning that the transaction is in progress, but it has not yet been completed. Typically, during this stage, the buyer will initiate home inspections, appraisal, and loan approval processes.

Under Contract Option Pending

While both under contract options pending and under contract pending have the same meaning, there`s a slight difference between them. Under contract option pending indicates that the buyer has requested an option period and is paying a fee for a certain number of days to cancel the contract for any reason. During the option period, the buyer has the right to back out of the deal without losing their earnest money deposit. The option period usually lasts between 3 and 10 days.

The option period allows the buyer to thoroughly inspect the property and be sure they want to proceed with the purchase. During this period, the buyer may discover issues with the property, such as major problems with the foundation or roof, that they feel they cannot deal with. If this happens, the buyer can cancel the contract and receive their earnest money deposit back.

Once the option period has expired, the buyer can no longer cancel the contract for any reason without losing their deposit. If the buyer decides to proceed with the purchase, the property will then become “under contract pending.”

In summary

Under contract option pending and under contract pending are two terms that describe the same situation – a real estate transaction where the seller and buyer have signed the purchase agreement. However, under contract option pending indicates the buyer has a right to back out of the deal without losing their earnest money deposit during the option period. While the option period may seem brief, it allows the buyer to make sure that the property is worth the investment. Whether you`re a buyer or a seller, it`s crucial to understand these terms so that you can navigate the transaction process and make informed decisions.