Readers ask: What Is The Meaning Of Option Pending In Real Estate?

Option Pending means that the transaction is still within the Option Period. So, buyers have a chance to back out. Pending means they are out of the Option Period to back out of the Contract, It means if there are any problems the seller and the buyer have work thru them and Pending is the last stage before they close.

Can you put an offer on a house that is option pending?

You can usually still submit a backup offer on a home that’s pending, but you may not be able to view the property. If you decide to submit an offer, make sure that your finances are in order and stay in touch with the home’s listing agent.

What is option pending in real estate?

Option Pending means that the Seller has accepted the Buyer’s offer, but the Buyer is still under the option period, which is a unilateral contract, during which only 1 party is obligated to perform- the Seller, and the Buyer has unrestricted right to back out of the contract.

What does contract pending option mean?

Option Pending means the buyer has bought the right from the seller to terminate the contract within the agreed number of days.

What is the difference between pending and option pending?

Option Pending is in place during the Option Period. The option period is the time where the buyer has the option of canceling the contract for any reason. Pending is after the option period and the sale is in escrow. It means the sale is Pending until closing.

Can a seller back out of a pending sale?

To put it simply, a seller can back out at any point if contingencies outlined in the home purchase agreement are not met. These agreements are legally binding contracts, which is why backing out of them can be complicated, and something that most people want to avoid.

How long is the option period?

The Option Period is usually 14 days, but may be negotiated between parties. Thus, the Option to Purchase is useful as the seller is not allowed to sell the property to any other buyers during the given Option Period, while the buyer has the same period of time to consider whether to go ahead with the purchase.

Is option money refundable?

In general, option fees are non-refundable. You should view them as a “good faith” payment to a buyer that you’re going to buy a house assuming it passes an inspection. If you want to demand a refund to an option fee, you may choose to ask the seller to apply the amount to closing.

What happens after the option period?

Negotiations for seller concessions or price negotiations are tackled during the option period. Once the buyer has made it past the option period, the contract in title terms goes ‘hard’ and the earnest money is now in play if they were to walk away without cause.

Can a realtor show a house that is pending?

Realtors can continue to show a house that is pending. If this is the case, sellers will allow the Realtor or real estate agent to show the property during closing. Due to the many reasons a pending sale can fall through, it is not uncommon for sellers to continue to show the property.

Do pending offers fall through?

A sale that is “under contract” means an agreement has been made between the seller and buyer, but the sale is still subject to contingencies. In a “pending sale,” contingencies have lapsed, and the deal is near closing. A pending sale can still fall through if there’s an issue with financing or the home inspection.

Can a seller accept another offer while under contract?

A seller cannot accept another offer if the listing became “in-contract.” A home is “in-contract” after the buyer and the seller have signed the contract. The buyer needs to pay the downpayment at the time of signing.

Can the seller back out during the option period?

The contract has yet to be signed – If the contract hasn’t been officially signed, a seller can back out of the deal at any time without any issues. If the seller doesn’t want to wait for the buyer to find another source of financing, then they are allowed to walk away from the deal.

Why would a house say pending continue to show?

“Pending continue to show” means that the seller wants to continue to show the house to other buyers in case the current contract falls through. During this time, the seller will still encourage—and even sign onto—backup offers for the property. They can simply accept backups in case the current contract doesn’t close.