Question

Shakeel and Shaheen have sold their home, made an offer on Derek and Kamisha's home, and the offer was accepted. All the details of the sale have been worked out, agreed upon and signatures obtained. Now, Shakeel and Shaheen must obtain a loan for the property. What is the best term to describe their position in the transaction's timeline?

Answer 1

In contract

Step-by-step explanation:

In real estate, a property is in contract when both buyers and sellers have signed an agreement for the sale of the property, but the sale s not closed yet. Generally this happens when some paperwork is not finished or when the buyers' bank has not approved the mortgage yet.

Missing paperwork can be solved by getting title insurance, but the part of the unapproved mortgage represents a bigger problem because until the buyer has the loan approved by the bank, the possibility of not getting it always exists and they could lose their earnest money.

Answer 2

In contract

Step-by-step explanation:

In simple terms, the best description is in contract. It means that both the buyer and the seller have come to an agreement and each party has signed a contract.

In the case of shakeel and Shaheen who want to buy Derek and Kamisha's home, the apartment is in contract because an offer has been made and agreed upon and each of the parties involved has signed the contract.