Under Contract

You are under contract once the seller has signed and accepted the buyer's offer. The contract being fully signed is referred to as Mutual Execution of Contract, abbreviated “MEC”. Some deadlines often refer to MEC, including the Earnest Money deadline (usually 3 days after MEC). If a buyer submits their offer on January 18, but the seller doesn’t sign and accept until January 19, the latter date is the MEC and any MEC-dependent deadlines are calculated from then.

While under contract (the contract period between acceptance and closing), the buyer and seller have some responsibilities. The buyer must conduct their due diligence, including an inspection and review of title, HOA, and any other documentation or disclosures. The seller must allow the buyer and/or their representatives to access the property for inspections, appraisal, and walkthrough, and provide disclosures to the best of their knowledge. Both parties must come to agreement regarding the buyer’s inspection objection items.

The contract period is commonly around 30 days; depending on the buyer and their lender (or if the buyer is paying all cash), or the seller’s preference, this can be shorter or longer. A cash transaction will often move more quickly, since there is no loan to be processed or approved. Sometimes a seller will request a specific closing date to match up with a deadline on their end.