When a house for sale has an offer to purchase made and the seller and buyer come to an agreement on all the terms, sign and initial where appropriate and delivery of the contract is completed, that property is said to be “Pending” or “Under Contract” or “In Escrow”, depending on where you are. That means that – if all the parties follow through with their obligations – the property will close and change hands.
Pretty straight forward, right?
I get asked on a regular basis – usually by a client who is the buyer – whether someone else can buy the house ‘ out from under them’. They want to make sure that all the stress they’re going through will pay off with a new house.
The answer is that, while the contract between the parties is binding on all, it ain’t sold until it’s closed and the deed recorded. For that reason, offers can continue to be presented to the seller up to the last minute. The very last. As in, until the register of deeds at the county courthouse has stamped the paperwork, reflecting the new owner’s information. Further, not only can offers be presented, they must be, by NC real estate licensing law.
But a presented offer cannot override a contract. So, if you’re worried about being bumped out of position on a house which you’re buying, relax. If you’re hoping to buy a house that someone else beat you to – sorry. Unless the original contract falls through for some reason, you’ll need to start looking at other houses.
The good news is, I can recommend a really good agent!
