Real Estate Contracts, Explained

Under contract means the seller has accepted a buyer's offer and both parties have signed the purchase agreement, but the sale has not closed yet. The home is spoken for while the buyer completes inspections, financing, and other contingencies. If those steps clear, the deal moves to closing. If a contingency fails, the contract can fall through and the home returns to the market.

Active under contract means the home is under contract but the seller is still accepting backup offers. It usually signals that the deal has contingencies not yet cleared, so there is a chance it could fall through. It differs from "pending," which typically means the contingencies are satisfied and the sale is close to final.

Usually not without cause. Once both parties sign, the seller is bound by the terms. A seller can typically only exit if the contract gives them a specific right to, such as an unmet contingency, or if the buyer agrees to release them. Backing out without a contractual reason can expose the seller to legal and financial consequences. For your specific situation, consult an attorney.

The clean way out is through a contingency the contract already gives you, such as financing, inspection, or appraisal, within its deadline. Outside those, both parties can mutually agree to terminate. Walking away without a contractual basis can mean losing your deposit or facing a claim. HomeJam's deal dashboard tracks every contingency and deadline so you know your options before one passes.

A purchase agreement lasts until the closing date written into it, which in Florida is often 30 to 60 days from the effective date, unless the parties amend it or a contingency ends it sooner. The contract itself sets the timeline through its deadlines for deposits, inspections, financing, and closing.

A purchase agreement is the contract that sets the full terms of a home sale: purchase price, earnest money deposit, contingencies, what is included, and the closing date. It is the core document that takes a deal from accepted offer to closing. HomeJam assembles yours from attorney-written templates, filled with your verified terms, so nothing is left to a blank form.

Florida does not require you to hire an attorney to buy or sell a home, though some people choose to. HomeJam assembles your contract from attorney-written templates and guides you through review and e-signing, so you are not drafting anything yourself. HomeJam is a licensed brokerage, not a law firm, so for legal advice about your specific situation you should consult an attorney.