In Texas, "under contract" means the seller has accepted a buyer's offer and both parties have signed the purchase agreement. "Pending" means the property is under contract and all contingencies have been satisfied. The deal is moving toward closing. Essentially, under contract is the beginning of the process (inspection, appraisal, financing still in progress), while pending means those steps are complete and closing is imminent. Neither status guarantees the sale will close.
Under Contract
When a property is marked "under contract," it means the seller has accepted an offer and both parties have signed the Texas Real Estate Commission (TREC) purchase agreement. This is the beginning of the active transaction phase.
- Signed purchase agreement in place between buyer and seller.
- Earnest money deposited in escrow with a title company.
- Option period active. The buyer has the contractual right to terminate for any reason during this time.
- Inspection, appraisal, and financing are all still in progress.
The deal could still fall through due to inspection issues the buyer cannot agree on with the seller, appraisal problems, or financing denial. Under contract is promising, but nothing is final until contingencies are cleared.
Pending
"Pending" is the next stage. The property is still under contract, but the major hurdles have been cleared. The deal is much further along and closing is on the horizon.
- All contingencies satisfied. Inspection, appraisal, and financing contingencies have been removed or waived.
- Loan is clear to close. The lender has issued final approval.
- Appraisal completed and value confirmed.
- Title work clean. No liens, encumbrances, or ownership disputes.
- Closing scheduled with the title company.
Pending means the deal is much closer to completion, but it is still not 100% guaranteed until closing day when the deed is recorded and you receive the keys.
Other MLS Statuses
Beyond under contract and pending, here are the other common statuses you will see on the MLS:
- Active: Available for sale. No offers have been accepted. You can submit an offer and schedule showings freely.
- Coming Soon: Listed in the MLS but not yet available for showings. Sellers use this to build anticipation. You can preview but cannot tour or submit an offer until the official date.
- Withdrawn: The seller has temporarily removed the property from the market. They may relist later.
- Expired: The listing agreement period ended without a sale. The property may be relisted with the same agent or a new one.
- Cancelled: The listing agreement was terminated early for any reason. Seller decided not to sell, found a buyer off-market, or switched agents.
What Pending Means for Other Buyers
If a property you are interested in is listed as pending, the existing deal is very likely to close. The contingencies have been satisfied, the loan is clear, and closing is on the calendar. Most pending homes do close.
That said, it is still possible for the deal to fall through. If you are serious about the property, ask your agent to put you on a backup position with the listing agent. If the current deal collapses, you could be next in line. Just do not count on it. Backup offers rarely close.
Why Deals Fall Through After Pending
Most deals that reach pending status do close, but it is not guaranteed. Here are the most common reasons a deal falls apart after going pending:
- Financing issues discovered late: The buyer's loan is denied right before closing due to a last-minute credit change, job verification issue, or underwriting finding a problem.
- Title problems: An unexpected lien, boundary dispute, or heir claim surfaces and cannot be resolved before closing.
- Buyer's life circumstances change: Job loss, divorce, medical emergency, or a death in the family.
- Seller decides not to sell: Rare, but it happens. The seller gets cold feet or finds a reason to back out under the contract terms.
These scenarios are uncommon but real. That is why it is important to stay actively involved through every stage of the transaction, not just assume a pending status means you can relax.