What “Under Contract” Actually Means in New York Real Estate

If you’ve been browsing homes online or following the local real estate market, you’ve probably seen listings marked “Under Contract.” But what does that really mean—Is the home officially sold? Can other buyers still make offers? And where exactly is the seller in the sales process?

In New York, the phrase “under contract” has a very specific meaning. Here’s a simple breakdown so you know exactly where things stand when you see it.

First: “Under Contract” means both parties have signed

In New York, a deal is considered “under contract” only after:

the buyer and seller have both signed the fully negotiated purchase contract, and
the buyer has delivered the contract deposit (usually 5–10% of the purchase price) to the seller’s attorney to be held in escrow.

Before those two things happen, the property is not officially under contract—even if a price has been verbally agreed on.

That period before signing is typically called “accepted offer” or “offer accepted,” and it’s much less secure.

What happens before a property goes under contract?

Here’s the usual New York progression:

Buyer submits an offer
Seller accepts the offer
Attorneys draft and negotiate contracts
Buyer completes inspections and due diligence
Buyer signs the contract
Seller signs – Now it’s officially under contract

Because New York is an attorney state, contracts are handled by lawyers, and this step-by-step process matters.

So… is the home officially off the market?

Usually, yes.

Once a property is under contract, sellers generally stop showing it and mark it as:

“Under Contract”
“Contract Signed”
“Pending”

But here’s something many buyers don’t realize:

The sale isn’t final yet.

The deal still needs to move through:

the mortgage process (if financing)
appraisal
title search
final walk-through
closing

Until the closing occurs and the deed transfers, the home is not considered “sold.”

Can another buyer still make an offer?

Short answer: technically yes, practically it depends.

In New York:

Backup offers can still be submitted
Sellers can receive and hold** backup offers
Sellers usually cannot break a fully executed contract just to take another offer

However, contracts may fall apart due to:

inspection issues
financing denial
low appraisal
title problems
cold feet

So backup buyers sometimes do end up getting the home.

That’s why agents will say:

“Feel free to submit a backup offer.”

It doesn’t interfere with the current deal, but positions you next in line if it collapses.

Can a seller accept another offer once under contract?

Once both parties are under a fully executed contract, the seller is legally committed, unless a specific contract contingency allows an exit.

Typical reasons a contract may be canceled include:

buyer cannot obtain financing
inspection or structural issues lead to termination
buyer and seller cannot agree on repairs or credits
title defects cannot be resolved

However, simply taking a “better offer” is not a valid reason to cancel most New York contracts.

What if you’re the buyer and the status is “under contract”?

Here’s what it means for you if you had your eye on the property:

You likely cannot buy it unless the existing deal falls apart
You can submit a backup offer
You should keep searching and not pause your home-buying plans
Set alerts, sometimes listings quietly return to market

Homes do come back, but waiting on just one is risky.

Bottom line

In New York real estate, “Under Contract” means:

✔ contracts are fully signed
✔ deposit is in escrow
✔ buyer & seller are committed
✘ but the home is not officially sold yet

Think of it as “almost there,” with closing still ahead.

If you’re thinking about buying or selling in New York and want help navigating offers, contracts, and negotiations, I’d be happy to guide you through each step. The process can feel complex—but with the right support, it doesn’t have to be stressful.

Just reach out anytime with questions at 646-421-4467