Back To Blog

Ask Charles Cherney - Question #22 - What does it mean when a property is under agreement?

What does it mean when
a property is under agreement?

askcharlescherney.com

What does it mean when a property is under agreement?
The short answer is that when a property is under agreement,
the property has a signed, accepted offer.
That is, there is a legally binding agreement between Buyer and Seller.

This is one of the most frequently asked real estate questions. Most all residential properties for sale in the Cambridge and Somerville market are listed in the Multiple Listing Service (MLS). In our MLS, a property that is for sale is ACTIVE (ACT). A property that is under agreement - that is, a property that has a signed, accepted offer - can be listed in MLS in one of two ways:

UAG - Under Agreement. There is a signed, accepted offer. That is, there is a legally binding agreement between Buyer and Seller.

CTG - Contingent. There is a signed, accepted offer. That is, there is a legally binding agreement between Buyer and Seller.

Yes, that's right, UAG and CTG status in MLS mean essentially the same thing - namely, that there is a signed, accepted offer between Buyer and Seller. If a property is said to be under agreement or contingent or pending or under contract or active with contract or have a signed offer - it means the same thing. Namely, that there is a signed, accepted offer between Buyer and Seller. And that means that the property is not presently available for sale.

It's typical for an accepted offer to have contingencies. Standard contingencies include home and pest inspections, mortgage and (for condos) condo docs and budget review. Contingencies afford a Buyer a way to exit a transaction. This means that a property that is under accepted offer could possibly come Back On the Market (BOM). Under accepted offer does always lead to SOLD (SLD). Remember, though, that when a property is under accepted offer, there is a legally binding agreement in place between the Buyer and the Seller. Other would-be buyers cannot undo an accepted offer - it is a legally binding agreement between the Buyer with the accepted offer and the Seller.

Why are some properties with accepted offers marked as UAG in MLS and others marked as CTG? Good question. The decision to list a property with an accepted offer in MLS as UAG or CTG is always a judgment call for the respective Seller, and it is the Seller's decision to make. Choosing CTG is a way of signaling the marketplace that there are one or more contingencies in the accepted offer that need to be satisfied and that the property could come back on the market. Of course, this could happen even for a property marked UAG in MLS. The important thing to to remember is that UAG and CTG mean essentially the same thing - namely, that there is a signed, accepted offer between Buyer and Seller.

I help buyers buy and sellers sell in Cambridge and Somerville, MA. Here to help you. Let's talk.

Call me at 617-733-8937 or email me.

See more questions and more answers at AskCharlesCherney.com

Check out the Cambridge Somerville Buy Sell Report at CharlesCherneyBuySellReport.com