When a property listing indicates it is in this status, it signifies that the seller has accepted an offer from a potential buyer. This acceptance initiates a legally binding contract between the parties, outlining the terms and conditions of the sale. For instance, the agreed-upon price, closing date, and any contingencies, such as a home inspection or financing approval, are specified in the document. The property is temporarily removed from active listings, although the sale is not yet finalized.
This stage is significant because it demonstrates serious intent to purchase the real estate. It provides a framework for the transaction, protecting both the buyer and seller’s interests. Historically, this commitment was often informal, but the modern real estate market relies on formal contracts to ensure clarity and accountability, minimizing potential disputes.