What Does Active Under Contract Mean? 📄 Explained Simply

what does active under contract mean

You’re scrolling through real estate listings or reading a property description and suddenly see the phrase “active under contract.” At first glance, it feels confusing — Is the house available or not? Many buyers and sellers pause at this term because it sounds contradictory.

If you’ve ever wondered what active under contract actually means, you’re in the right place. This guide explains the term in plain language, shows real-world examples, and helps you understand whether you can still make an offer or not.

Quick Answer:
Active under contract means a property has an accepted offer, but the sale is not final yet. It’s still listed as active because certain conditions must be completed before closing.


🧠 What Does Active Under Contract Mean?

 What Does Active Under Contract Mean

Active under contract is a real estate status that means:

  • The seller has accepted a buyer’s offer
  • The home is not officially sold yet
  • The deal depends on conditions (called contingencies)

These contingencies may include:

  • Home inspection
  • Financing approval
  • Appraisal
  • Sale of buyer’s current home

Example:

“The house is active under contract while the buyer completes the inspection.”

In short:

Active under contract = Offer accepted, but sale not completed yet.

This status keeps the listing visible in case the deal falls through.


🏡 Where Is “Active Under Contract” Commonly Used?

Where Is “Active Under Contract” Commonly Used

You’ll most often see this term on:

  • Real estate listing websites 🏘️ (Zillow, Realtor, MLS)
  • Property search apps 📱
  • Agent listing descriptions 👩‍💼
  • Home buying platforms 💻
  • Market reports 📊

Formality: Professional
Industry-specific: Yes (Real estate)
Casual use: No

This term is mainly used by agents, buyers, sellers, and investors.

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💬 Examples of Active Under Contract in Real Situations

Examples of Active Under Contract in Real Situations

Buyer: Is the house still available?
Agent: It’s active under contract, but backup offers are welcome.

Buyer: Can I schedule a viewing?
Agent: Yes, the deal isn’t final yet.

Seller: Why is my home still online?
Agent: It’s active under contract until closing.

Investor: Should I submit an offer?
Agent: You can submit a backup offer.

Buyer: Is the sale guaranteed?
Agent: Not until all contingencies are cleared.

Seller: What if the buyer fails inspection?
Agent: The listing returns to active status.


🕓 When to Use and When NOT to Use “Active Under Contract”

✅ When to Use

  • Describing a property with a pending deal
  • Explaining real estate listing statuses
  • MLS and agent communications
  • Market updates and reports

❌ When Not to Use

  • Casual conversations
  • Legal contracts without context
  • Advertising a fully sold property
  • Non-real-estate discussions

Context Comparison Table

ContextExample PhraseWhy It Works
Listing SiteActive under contractAccurate status
Agent CallOffer accepted, pending conditionsClear explanation
Buyer ChatSale not finalized yetEasy understanding
Closed SaleSoldFinal status

🔄 Active Under Contract vs Similar Real Estate Terms

TermMeaningKey Difference
ActiveNo offers yetFully available
Active Under ContractOffer accepted, conditions pendingNot final
PendingAll contingencies clearedAlmost sold
Under ContractAgreement signedMay or may not be active
SoldTransaction completeClosed

⚠️ Can You Still Make an Offer?

Yes — in many cases, you can submit a backup offer.

A backup offer:

  • Takes effect if the current deal falls through
  • Puts you next in line
  • Shows strong buyer interest
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This is common in competitive markets.


❓ FAQs About Active Under Contract

1. Is active under contract the same as pending?
No. Pending means contingencies are cleared.

2. Can buyers still view the home?
Sometimes, depending on the seller.

3. Does active under contract mean sold?
No, the sale is not complete yet.

4. How long does this status last?
Usually until inspections and financing are done.

5. Can the deal fall apart?
Yes, if conditions aren’t met.

6. Should buyers still be interested?
Yes, especially for backup offers.


📝 Mini Quiz – Test Your Knowledge

1. Active under contract means:
a) Sold
b) Offer accepted but not final ✅
c) No buyer

2. Why is the listing still active?
a) Seller changed mind
b) Conditions remain ✅
c) No agent

3. Can buyers submit offers?
a) No
b) Yes, backup offers ✅
c) Only after closing

4. Which status means nearly sold?
a) Active
b) Pending ✅
c) Listed

5. Active under contract is mostly used in:
a) Texting
b) Real estate ✅
c) Gaming


📝 Conclusion

Active under contract is a common real estate term that simply means a deal is in progress, but not guaranteed. While an offer has been accepted, inspections, financing, or other conditions still need approval.

For buyers, it’s a sign to stay alert. For sellers, it keeps options open. Understanding this term helps you navigate property listings with confidence and clarity.

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