In real estate, the “under offer” meaning is straightforward: a seller has accepted a buyer’s offer on the property, but the two sides haven’t signed a binding purchase contract yet. The home has been pulled from active marketing and is effectively reserved for that buyer, but no one is legally locked in. Either party can still walk away without consequence.
The term shows up most often on UK and Australian listings. In the United States, you’ll usually see “contingent,” “pending,” or “under contract” instead, and those labels don’t all mean the same thing.
What “Under Offer” Actually Means
Treat it as a handshake deal. The seller has said yes to the price and basic terms, the property is off the market in a practical sense, and the buyer is lining up inspections and financing while the paperwork for a formal purchase agreement is drafted. None of that creates an enforceable contract.
Because no contract exists, the reservation only holds while both sides keep moving forward in good faith. If the buyer’s inspection turns up problems or their financing stalls, they can step back. If the seller changes their mind before signing, they can do the same. That’s the key feature of this stage, and it’s why “under offer” carries less certainty than labels that come later in the process.
How It Differs from Contingent, Pending, and Under Contract
Listing statuses sit on a spectrum from “accepted but not committed” to “signed and nearly closed.” Knowing where a property sits tells you how firm the sale really is.
- Contingent. The seller has accepted an offer and the parties have signed a contract, but closing depends on specific conditions being met. Common ones are a satisfactory home inspection, an appraisal at or above the purchase price, and the buyer’s mortgage approval. If any of those fails, the deal can unwind.
- Pending. All contingencies have been cleared and the sale is moving toward closing with only final legal and administrative steps left. Pending sales are much less likely to collapse than contingent ones.
- Under contract. Both parties have signed a legally binding purchase and sale agreement. Some contingencies may still be outstanding, but the commitment is formalized. Walking away without a valid contractual reason exposes the departing party to financial or legal consequences.
- Sold subject to contract (SSTC). A British term for the same situation as “under offer”: the seller has accepted an offer, but contracts haven’t been exchanged. No legal obligation exists until that formal exchange.
The practical read: “under offer” and SSTC are the loosest statuses, “contingent” is firmer but still breakable, and “pending” or “under contract” are the hardest to interrupt. The earlier the stage, the better your chances if you want to position yourself for the property.
Can You Still Make an Offer on a Property That’s Under Offer?
Yes. You can submit what’s called a backup offer on a property that’s under offer, contingent, or even under contract. Your offer sits in second position and activates automatically if the primary deal falls apart. Roughly one in six pending sales doesn’t close, so backups are more than a long shot in many markets.
A backup offer looks like any other purchase contract, with your price, contingencies, and timeline spelled out. The one addition is a provision stating the offer only becomes active if the existing deal terminates. If that happens, you slide into the primary position and the transaction proceeds as if you had been the original buyer.
Sellers often welcome backup offers because they avoid weeks of remarketing if the first deal collapses. The downside for you is the waiting. Your earnest money may be tied up while the primary deal plays out, and you might find a better property before the first one resolves.
Kick-Out Clauses
Some contracts give the seller a more aggressive option called a kick-out clause. It lets the seller keep showing the property after accepting a contingent offer. If a stronger, non-contingent offer comes in, the seller notifies the original buyer, who then has a short window, usually 72 hours and sometimes as little as 24, to waive their remaining contingencies and commit, or walk away with their earnest money returned.
Kick-out clauses show up most often when the original buyer’s offer includes a home-sale contingency, meaning they first need to sell their current place. Sellers don’t want to wait indefinitely for that to happen, so the clause gives them a lever.
Can the Seller Back Out of an Accepted Offer?
Before the purchase agreement is signed, yes. At the “under offer” stage, acceptance creates an expectation, not a contract, so the seller can change their mind without legal consequence. That’s the flip side of your ability as a buyer to walk away at this point.
After signing, the seller’s options narrow sharply. A seller can legally cancel if the buyer breaches first, such as missing a financing deadline or failing to deposit earnest money on time. Some contracts also include a seller contingency, often tied to finding a replacement home by a specific date. And in states that require attorney review, either party can typically cancel during that short review window without penalty.
A seller who backs out of a signed contract without a valid reason faces real exposure. The buyer can sue for breach of contract and seek either financial damages or specific performance, a court order forcing the seller to complete the sale. Courts grant specific performance in real estate disputes more readily than in other contract cases because each property is considered unique, and money alone doesn’t fully compensate a buyer who loses the specific home they contracted to buy. The seller may also still owe their listing agent’s commission, depending on the terms of the listing agreement.
In practice, a seller who wants out typically asks the buyer to mutually cancel. If the buyer agrees, the contract dissolves and the earnest money goes back. But the buyer has no obligation to agree, and a seller who tries to force the issue without cause is the one in the weaker legal position.