When buying or selling real estate, one important term to understand is “contract signed.” This phrase refers to the point in the transaction where all parties involved have agreed to the terms of the sale or purchase and have signed a legally binding contract.

In real estate, the contract signed is typically referred to as the purchase agreement. This document outlines the details of the transaction, including the purchase price, closing date, and any contingencies or conditions that must be met before the sale can be completed.

For the buyer, signing the contract means that they have committed to purchasing the property and are legally obligated to follow through with the transaction. This includes providing the agreed-upon funds on the closing date and completing any necessary inspections or repairs.

For the seller, signing the contract means that they have agreed to sell the property at the specified price and have agreed to any contingencies or conditions outlined in the contract. Once the contract is signed, the seller is legally obligated to transfer ownership of the property to the buyer on the agreed-upon closing date.

It is important to note that a contract signed is not the same as a closed transaction. While the signing of the contract is an important milestone in the real estate transaction, there are still several steps that must be completed before the sale is closed and the property ownership is transferred to the buyer.

Some common contingencies that must be met before closing include obtaining financing for the purchase, completing a satisfactory inspection of the property, and resolving any issues that may arise during the title search process.

In summary, a contract signed in real estate means that all parties involved have agreed to the terms of the sale or purchase and have signed a legally binding agreement. While this is an important milestone in the transaction, there are still several steps that must be completed before the sale is closed and the property ownership is transferred.