What does it mean if a property is described as "under contract"?

When a property is described as "under contract," it means that a purchase agreement has been accepted by both the buyer and the seller, indicating mutual consent on the terms of the sale. At this stage, while the sale is not yet finalized, both parties are legally bound to the terms outlined in the contract, including conditions that must be met prior to closing the transaction.

This status is significant as it generally means that the property is no longer available for other buyers, putting it in a transitional phase where it awaits further steps such as financing approval, inspections, or other contingencies to be resolved before the sale can close. In this context, the concept of the property being "under contract" reflects a commitment that goes beyond mere negotiation, emphasizing the important legal standing of the agreement between the buyer and the seller.