Overview
In real estate, “sale pending” refers to a property that has successfully found a buyer, and both the buyer and seller have signed a purchase contract. However, the transaction is not yet finalized as the closing process is still in progress. During this period, various contingencies such as inspections, appraisals, and financing need to be satisfied. If any of these contingencies fail, the sale could potentially fall through.
Examples
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Residential Property: John and Jane Doe found the perfect house and made an offer. The seller accepted, and they signed a contract. The home’s status moves to “sale pending” as they await financing approval and the completion of a home inspection.
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Commercial Property: A company decides to buy a commercial building to expand its operations. After negotiating and signing the purchase contract, the property’s status is updated to “sale pending” while they conduct due diligence and finalize financing arrangements.
Frequently Asked Questions (FAQs)
What does it mean when a property is listed as “sale pending”?
“Sale pending” means that an offer has been made and accepted, and a contract has been signed, but the transaction has not yet closed.
Can I still make an offer on a property that is “sale pending”?
Typically, offers are no longer accepted when a property is marked as “sale pending.” However, a backup offer can sometimes be submitted if the initial deal falls through.
How long does the “sale pending” status usually last?
The duration varies but typically lasts from a few weeks to a few months, depending on the time required to fulfill contingencies like inspections and financing.
Can a “sale pending” status fall through?
Yes, a “sale pending” status can change back to “for sale” if any of the contingencies (e.g., inspection, financing) are not met.
Is “sale pending” different from “under contract”?
Generally, both terms are used interchangeably to refer to a property for which a sale agreement has been signed but has not yet closed.
Backup Contract
A secondary offer on a property that becomes active if the primary contract fails.
Closing
The final step in a real estate transaction where ownership of the property is transferred from the seller to the buyer.
Contingency
A condition in a real estate contract that must be met for the transaction to move forward.
Multiple Listing Service (MLS)
A database used by real estate brokers to share information about properties for sale.
Online Resources
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National Association of Realtors (NAR): nar.realtor - Provides market trends, research, and information on the home buying process.
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Multiple Listing Service (MLS): mls.com - A database to search for real estate listings.
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Zillow: zillow.com - Offers information on real estate listings, market trends, and property valuations.
References
- National Real Estate Handbook by William Ventolo Jr. and Martha Williams. A comprehensive guide to understanding various terms and processes in the real estate market.
- Real Estate Principles by Charles F. Floyd and Marcus T. Allen. This book provides foundational knowledge on real estate principles and practices.
Suggested Books for Further Studies
- “Real Estate Principles: A Value Approach” by David C. Ling and Wayne R. Archer
- “The Millionaire Real Estate Agent” by Gary Keller
- “Real Estate Investing For Dummies” by Eric Tyson and Robert S. Griswold
Real Estate Basics: Sale Pending Fundamentals Quiz
### What does "sale pending" mean in real estate?
- [ ] The property is not for sale.
- [ ] An offer has been made but not accepted.
- [x] An offer has been accepted and a contract signed, but the transaction has not yet closed.
- [ ] The property has closed, and the new owner has taken possession.
> **Explanation:** "Sale pending" indicates that an accepted offer and signed contract are in place, but the transaction hasn't yet closed.
### Can you usually make an offer on a "sale pending" property?
- [ ] Yes, it is highly encouraged.
- [x] No, but a backup offer can sometimes be made.
- [ ] Yes, there are no restrictions.
- [ ] No, the property is no longer available at all.
> **Explanation:** Generally, new offers are not accepted once a property is marked as "sale pending." However, backup offers can sometimes be submitted.
### How long does a "sale pending" status last?
- [x] A few weeks to a few months.
- [ ] A year or more.
- [ ] One day.
- [ ] It doesn't have a time frame.
> **Explanation:** The "sale pending" period typically lasts from a few weeks to a few months, varying based on the time needed to satisfy all conditions of the sale.
### What term is often used interchangeably with "sale pending"?
- [ ] Bidding
- [ ] Auction
- [x] Under Contract
- [ ] For Sale by Owner
> **Explanation:** "Sale pending" and "under contract" are often used interchangeably to indicate that an offer has been accepted and formalized with a contract.
### What is a backup contract?
- [ ] Another property listed for sale.
- [ ] A mortgage pre-approval.
- [x] A secondary offer that becomes active if the primary contract fails.
- [ ] An insurance document.
> **Explanation:** A backup contract is a secondary offer, which only becomes effective if the primary contract is not fulfilled.
### Which database do brokers use to list properties and their statuses?
- [ ] Google
- [ ] Yahoo
- [x] Multiple Listing Service (MLS)
- [ ] Craigslist
> **Explanation:** Brokers use the Multiple Listing Service (MLS) to share information about properties and their statuses.
### What might a "sale pending" status convert to if contingencies are not met?
- [x] For Sale
- [ ] Sold
- [ ] New Listing
- [ ] Off-Market
> **Explanation:** If the contingencies specified in the contract are not met, the "sale pending" status can revert to "for sale."
### Does "sale pending" indicate that the closing has occurred?
- [ ] Yes, the property is officially sold.
- [x] No, the transaction is in progress.
- [ ] Yes, and the buyer has moved in.
- [ ] It depends on the state laws.
> **Explanation:** "Sale pending" means the transaction is still in progress and the closing has not yet occurred.
### What must happen during the "sale pending" period for the sale to be finalized?
- [ ] Buyer must present a gift.
- [ ] No further actions are required.
- [ ] Friends and family must get involved.
- [x] Contingencies like inspections, appraisals, and financing must be satisfied.
> **Explanation:** For the sale to be finalized, contingencies such as inspections, appraisals, and securing financing must be completed.
### Where can you find guidelines for "sale pending" transactions?
- [ ] Facebook
- [ ] Twitter
- [ ] Local news
- [x] National Association of Realtors (NAR)
> **Explanation:** The National Association of Realtors (NAR) provides guidelines and standardized practices for real estate transactions, including those marked as "sale pending."
