Putting a property under contract is a term used in the real estate industry that refers to the process in which a buyer and seller agree to the terms of a property sale. This agreement is legally binding and it outlines the terms of the transaction, including the price, closing date, contingencies, and any other relevant information.

When a seller accepts an offer from a buyer, they typically sign a purchase agreement, which puts the property under contract. This agreement lays out the terms of the sale and establishes the legal obligations of both the buyer and seller.

Once a property is under contract, the buyer typically has a period of time to complete any inspections or due diligence on the property before the sale is finalized. During this time, the buyer may negotiate repairs or request repairs, and the seller may agree to these requests or negotiate different terms.

The contract also typically includes contingencies, which are conditions that allow the buyer to back out of the sale without penalty. Common contingencies include an inspection contingency, which allows the buyer to cancel the sale if the inspection reveals major issues with the property, and a financing contingency, which allows the buyer to cancel the sale if they are unable to secure financing.

If all contingencies are met and the buyer is satisfied with the property, they will typically move forward with the sale, and the property will be transferred to the buyer. If the buyer backs out of the sale during the contingency period, they may forfeit their earnest money deposit, which is a sum of money typically paid at the time the offer is made and held in escrow until the sale is finalized.

Putting a property under contract is an important step in the real estate transaction process, as it establishes the legal obligations of both parties and creates a timeline for completing the sale. It is important for both buyers and sellers to carefully review all terms of the sale and consult with legal and financial professionals to ensure they fully understand their rights and responsibilities.