Contingent & Pending.....What is the difference?

Contingent and Pending are two terms that describe the current availability of a property on the market. They both share similar traits but also are very different in many ways.

Contingent and Pending means: That an offer from a buyer has been accepted on a property for sale. They buyer and seller have come to an agreement on a price and terms of the contract/ transaction. Although during the escrow process terms and conditions may be negotiated based on findings of reports or different terms that may arise.

So what is the difference?

Contingent Status:

This means that although the buyer and seller have come to agreement on price and terms, the buyer is obtaining further information on the property. This includes a Termite report or Home Inspection Report if the buyer elected to have one done. The buyer still needs to review Condo/ TIC documents including H.O A. Newsletters, financial records, reserves, possibly sellers approving the buyer for a TIC, Covenant, Conditions & Restrictions for a condo and the approval of what further reports the buyer has elected to have. Along with inspections and reports during the Contingent period the buyer is awaiting final approval from the bank (underwriter), that all the needed documents have been submitted, approved and acknowledged by the Bank. This allows the buyer to have a period that if something arises and their financing is not approved, the buyer may back out of the contract without losing their "good faith deposit." So Contingent means that the property is sold with the understanding that the buyers is to perform duties in financing and inspecting documents (ie: Title) within the time lines specified in the contract.

Pending Status: Pending means that all the contingencies in the contract have been approved. The buyer has done all the investigating and has approved everything that they have found on the property. The lender has given the okay that the loan has a final approval and the buyer may move forward on the purchase. During the pending process is when loan documents are being prepared by the Bank, escrow documents are being processed at the Escrow company. In this time frame the buyer and seller will be scheduling appointments at the Escrow company to sign all transaction related documents.


* Most contingent properties are still available to view. Keep in mind that a Buyer has already placed an offer and that if you do decide to write an offer you will be placed in back-up position in case the first offer does not go through. This will depend how far the buyer/seller are in on the contingencies and if the seller wants to participate. I hope this helps out!

If you need my assistance please feel free to contact me via email or phone.
(415) 336-8191 - Cell
georgelangford@zephyrsf.com


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