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Real Estate Under Contract. The real estate term âunder contractâ means that a binding agreement exists between a buyer and a seller involving property. The buyer and the seller are in agreement with the terms in the contract. When a property is under contract, the seller may not enter into contract with any other buyer.
Unlike a real estate contract, a listing agreement is an employment contract in which the broker is hired to represent the principal, but no real property is transferred between the two. document in which a property owner (as principal) contracts with a real estate broker (as agent) to find a buyer for the owner's property.