Ace the Hawaii Pre-Licensing Exam 2026 – Surf Your Way to Real Estate Success!

When a property is described as "under contract," it signifies that a buyer has submitted an offer for the property, which the seller has accepted. However, the transaction has not yet reached completion; essential steps, such as inspections, financing arrangements, and closing, still need to take place. This phase is critical because it marks the transition from an active listing to a binding agreement, indicating that both parties are committed to moving forward with the sale, contingent upon the successful fulfillment of the specified conditions.

In this context, the notion of being "under contract" typically removes the property from active market listings, as it indicates a serious intent to transact where both parties are now working towards executing the sale. This phase can often lead to heightened activity regarding legal documents and financial procedures.

The other choices do not accurately reflect the meaning of "under contract." For example, a property actively listed for sale suggests that it is still available for offers, whereas being under contract indicates that a buyer’s offer is already accepted. Ownership by a government agency relates to the property’s ownership status rather than its transaction status. Lastly, when a seller removes the property listing from the market, it could be due to various reasons but does not necessarily mean a contract exists. The key point