When you see a piece of land with a “Under Contract” sign, it means that the owner has accepted an offer from a buyer, but the sale has not yet been completed. Under contract refers to a legal agreement between the buyer and the seller, which outlines the terms and conditions of the sale.

The contract is legally binding and typically includes a contingency clause, which gives the buyer a specific amount of time to complete due diligence and finalize financing. During this period, the land is effectively off the market, and no other offers will be considered.

Once the contingencies have been met, the sale can move forward to closing, which is when ownership of the land is officially transferred from the seller to the buyer. The contract may also include a closing date, which is when the final sale will take place.

Buying land under contract can be both advantageous and challenging for the buyer. On one hand, it allows the buyer to secure the property before other potential buyers can make a bid. On the other hand, if the sale falls through due to issues with financing or other contingencies, the buyer may lose out on the property and any money put towards earnest money or fees.

It`s important for both parties to make sure that the contract is clear and thorough, outlining all terms and conditions of the sale. Working with a real estate agent or attorney experienced in land sales can help ensure that the contract is fair and legally binding.

In conclusion, when land is under contract, it means that the buyer and seller have agreed to terms, but the sale has not yet been completed. The buyer has a specific amount of time to complete due diligence and finalize financing before the sale can move forward to closing. If you are interested in buying land that is under contract, it`s important to work with a professional and carefully review the contract to ensure a successful transaction.