The phrase indicates that a conditional agreement has been established between parties regarding a real estate transaction. It signifies that an offer has been accepted, and both buyer and seller have committed to fulfilling specific obligations outlined in a formal, legally binding document. For example, a house listed as under contract suggests a buyer and seller have agreed on a price and terms, but the sale is not yet final. It’s a status change reflecting a key point in the propertys journey to being sold.
This status is crucial because it provides clarity to potential buyers and sellers. It informs other interested parties that the property is no longer actively on the market, reducing unnecessary inquiries and viewings. Historically, this marker reflects a significant advancement in the sales process, moving beyond initial interest to a phase of due diligence, inspections, and potential negotiation of minor issues before final closure. It offers a degree of assurance, although the deal is not yet certain.