When you`re in the process of buying or selling a property, you`ll likely come across the phrase “going into contract” at some point. But what exactly does this mean?
Going into contract refers to the point in the buying or selling process where the parties involved have agreed to the terms and conditions of the transaction and have signed a contract. This contract outlines the specifics of the deal, such as the purchase price, closing date, and any contingencies that must be met.
Once both parties sign the contract, it becomes legally binding. This means that if either party reneges on the agreement, they could face penalties or legal action.
Before going into contract, it`s important to do your due diligence and ensure that all necessary inspections and checks have been completed. For buyers, this might include a home inspection, title search, and financing approval. For sellers, this might involve ensuring that any necessary repairs or updates have been made to the property.
It`s also important to carefully review the contract before signing it. If you have any questions or concerns about the terms, it`s wise to discuss them with your real estate agent or attorney before proceeding.
Overall, going into contract is a significant step in the buying or selling process. It signals that both parties are committed to the transaction and have agreed to the terms outlined in the contract. So if you`re in the midst of a real estate deal, make sure you understand what going into contract means and proceed with caution.