Under Contract Pending Continue to Show
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| So we have seen many listings with Option pending continue to show status . Our house just went under contract and our realtor is telling me that it has to be under Option pending only not Option pending continue to show. |
10-03-2014, 11:58 AM | | |||
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| The ways MLS systems list property varies across the country. This sounds like a rule of a specific MLS system. MLS systems have rules for how a house status must appear. There are definitions in place. I'm guessing here, but it maybe that Option pending indicates that only financing and inspections (normal contingencies) need to be satisfied. Option pending continue to show likely indicates that there is a kick-out clause in the original purchase agreement. Ask your Realtor for the specific difference between the two and why your home must be Option Pending. |
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| Agreed. rrah has exactly described what my area's MLS does. "Pending" means it has an accepted offer. "Contingent" means that they have an accepted offer, but with a bump clause, meaning they have the right to continue to show and "bump" the current offer. Without a specific document, negotiated as part of the deal, the house must be marked Pending. Usually, in my area, the "Right to continue to market" form is usually only agreed to if the buyer is in a weak position, such as if they have a house to sell before they can close. |
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| Quote: Originally Posted by rrah The ways MLS systems list property varies across the country. This sounds like a rule of a specific MLS system. MLS systems have rules for how a house status must appear. There are definitions in place. I'm guessing here, but it maybe that Option pending indicates that only financing and inspections (normal contingencies) need to be satisfied. Option pending continue to show likely indicates that there is a kick-out clause in the original purchase agreement. Ask your Realtor for the specific difference between the two and why your home must be Option Pending. This is an interesting phrase (boldfaced above). Would this include the "subject to appraisal" clause? I don't think I've seen a buyer with mortgage-backed financing enter a sales contract in over two years without the "subject to appraisal" in the contract. |
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| Quote: Originally Posted by TexasDillo This is an interesting phrase (boldfaced above). Would this include the "subject to appraisal" clause? I don't think I've seen a buyer with mortgage-backed financing enter a sales contract in over two years without the "subject to appraisal" in the contract. I'm not sure I understand what you are asking here... A contract with a bump/kick clause could also be contingent on financing, or subject to appraisal, but could also be a cash buyer with no appraisal contingency. In other words, you don't typically have a bump clause for just financing, but you could. That is unrelated to whether the offer is contingent on financing or not. You can have an offer that is contingent on financing that doesn't have a bump clause/right to continue to market. Most, in fact, are this way. |
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| No worries. Just wasn't sure how you were using the term "bump" but re-read your post #3 which I now interpret meaning to "increase the bid or offer" for the property. Don't think I've ever heard my realtor friends and associates ever use that term. They all tend to use the term "contingency clause" to cover a variety of situations that have a related dependency or event. Semantics and all that stuff. |
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| Quote: Originally Posted by TexasDillo No worries. Just wasn't sure how you were using the term "bump" but re-read your post #3 which I now interpret meaning to "increase the bid or offer" for the property. Don't think I've ever heard my realtor friends and associates ever use that term. Semantics and all that stuff. not exactly A bump clause is the same as a kickout clause or a right to continue to market clause. It means you can "bump" the first offer aside and take a different deal that comes along, if the first offer isn't able to remove their contingency. In other words, you have an offer with a bump clause, and a better offer comes along. You give the first offer 3 days to remove their contingency (whatever it was) or step aside (aka be bumped). |
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| I think you might be thinking of an escalation clause. That is when the buyer says "I will offer 1% more than your next highest offer" or whatever, stating that they are willing to pay more than another other bid you get. |
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| Quote: Originally Posted by Lacerta I think you might be thinking of an escalation clause. No. |
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| It's used mostly for when there is a contingency for the buyers to sell their home. IF another offer comes in, the seller can ask the buyer to remove that particular Contingency. If buyer doesn't, then the seller can cancel that contract and accept the new offer. |
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