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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.
For most real estate transactions, the Buyer and Seller will use a real estate broker. To sell your home, the real estate broker will want a listing agreement signed. You should consult a lawyer before signing the listing agreement. It is a binding contract when signed by both parties. In the same way, the Buyer should understand the Buyer/Broker's form before signing.