What is Active Under Contract?

**Active under contract** is a real estate listing status indicating that a seller has accepted a buyer's offer but the transaction has not yet closed and contingencies remain unresolved. The property remains visible on the market because the deal could still fall through if conditions such as financing approval, home inspection, or appraisal are not satisfied. This status tells other buyers and agents that a purchase agreement exists but the property may still become available. In most US real estate markets, active under contract sits between an accepted offer and a fully pending or closed sale. Listing agents keep this status to attract backup offers, which is especially common in competitive markets where deals sometimes collapse due to inspection findings or lender issues. For freelancers working in real estate -- photographers, home stagers, transaction coordinators, copywriters -- understanding this status matters for scheduling services and setting billing expectations. A deal that is active under contract may still need professional services, but payment could be delayed or cancelled if the transaction falls through before closing.

When a seller accepts a buyer's offer, the listing agent updates the MLS to reflect that a contract is in place. If the agent selects active under contract rather than pending, it signals they are still accepting backup offers. This phase typically lasts from a few days to several weeks depending on how quickly contingencies are resolved. During this period the buyer conducts inspections, secures mortgage financing, and waits for an appraisal. Each contingency has a deadline. If the buyer cannot satisfy conditions -- for example if the lender declines the mortgage application -- the buyer may cancel and recover their earnest money, returning the property to active status. For service vendors active in real estate transactions, this phase involves inspectors, appraisers, photographers, and closing attorneys. Freelancers providing these services should know that payment timelines are often tied to closing, and a deal falling through can disrupt cash flow projections. Building cancellation terms into your service agreements protects income when transactions collapse before completion. The active under contract phase also creates opportunity. Listing agents sometimes order new photography or updated marketing materials to attract backup buyers while the primary contract is still in play. Freelancers who proactively ask whether refreshed assets are needed can capture additional work during this window.

Freelancers serving the real estate industry regularly encounter active under contract listings. Real estate photographers, virtual tour creators, home stagers, copywriters, and transaction coordinators all need to understand what this status means for their work and payment timelines. A real estate photographer hired to shoot a home that is active under contract should confirm with the listing agent whether new marketing materials are needed. In some cases the agent wants updated photos to attract backup buyers; in others the shoot may be postponed until the deal closes or falls through. Without this clarity a freelancer risks doing work that goes unpaid if the client cancels the project. Small businesses providing services to real estate agents should include contract language covering scenarios where an active under contract deal collapses before services are fully delivered. A clause stating that a deposit is non-refundable once work begins protects the freelancer from losses caused by events outside their control. For transaction coordinators who earn fees only upon closing, an active under contract deal that collapses means no income for the work already invested. Many experienced coordinators charge a flat fee for services rendered regardless of whether a transaction closes, or they require a partial upfront payment that covers their time even in the event of cancellation. Whatever your model, make the payment structure explicit before starting work.

Active under contract and pending are two distinct MLS statuses that buyers, sellers, and vendors frequently confuse. The core difference is contingencies and openness to backup offers. An active under contract listing still has unresolved contingencies and the agent is open to receiving backup offers. A pending listing typically means all contingencies have been met or waived and the transaction is moving toward closing without further conditions to satisfy. Pending deals are significantly less likely to fall through. For freelancers and vendors the practical difference affects scheduling and invoicing. Active under contract work may be postponed or cancelled; pending work is usually safe to proceed. Confirm the transaction status before committing significant time or resources to a project. When in doubt, require a deposit to protect yourself regardless of status.

A practical approach for freelancers and small businesses serving real estate clients: 1. Confirm the status before booking -- Ask your client whether the listing is active under contract or fully pending before scheduling services. 2. Require a deposit -- Collect 25 to 50 percent upfront before beginning work on any active under contract property to protect yourself if the deal falls through. 3. Set clear cancellation terms -- Include a clause in your service agreement specifying payment owed if the transaction cancels after work has begun. 4. Invoice promptly -- Send your invoice as soon as deliverables are complete rather than waiting for closing. This establishes the payment obligation clearly. 5. Track invoices by deal status -- Note which open invoices are tied to active under contract transactions so you can follow up proactively as closing dates approach.

Eonebill.ai helps freelancers serving the real estate industry manage invoicing for active under contract transactions. With the [free invoice generator](/free-tools/invoice-generator) you can create professional invoices that include deposit requirements, cancellation terms, and clear payment schedules -- everything needed to protect your income whether a deal closes or not. Eonebill Pro and Business plans, available at [Eonebill pricing](/pricing), let you track which invoices are tied to open transactions, send automated payment reminders as due dates approach, and set up partial deposit invoices followed by final payment invoices when projects complete. These features keep your cash flow stable even when working across multiple active under contract deals simultaneously.

1. Starting work without a deposit: Beginning photography or staging on an active under contract property without collecting a deposit exposes you to full income loss if the deal collapses before you collect payment. 2. Confusing active under contract with pending: Treating an active under contract listing as a done deal leads to poor scheduling and unrealistic payment expectations. Always confirm which status applies. 3. Omitting cancellation terms: Failing to specify compensation owed if the transaction falls through leaves you without a legal basis to collect for work already done. 4. Waiting until closing to invoice: Sending your invoice only after closing means any closing delay also delays your payment. Invoice immediately upon delivery. 5. Missing backup offer opportunities: Not knowing a listing still accepts backup offers means missing additional service opportunities with new buyers who step in if the primary deal falls through.

Understanding active under contract connects to several related concepts. [Payment terms](/glossary/payment-terms) define when and how a vendor expects to be paid, which is critical for transactions that may take weeks to close. [Retainer fee](/glossary/retainer-fee) arrangements are common in real estate service relationships where a vendor is kept on call for multiple transactions. [Invoice automation](/glossary/invoice-automation) can help real estate vendors send invoices automatically when deal milestones are reached. [Milestone payment](/glossary/milestone-payment) structures allow vendors to collect partial payment at each phase of a transaction rather than waiting for a single lump sum at closing.