The Final Step: Understanding When a House is Considered Sold

August 02, 2023

The Final Step: Understanding When a House is Considered Sold

Selling a house can be a complex and emotionally charged process. From listing the property to negotiating offers and navigating through the paperwork, it’s a journey that demands patience, skill, and perseverance. As a seller, one of the most crucial moments in this process is when the house is considered sold. But what exactly does that mean? When can you confidently say that the deal is done? Let’s explore the final step of understanding when a house is considered sold.

Acceptance of the Offer:

The journey towards selling a house typically begins with listing it on the market. After attracting potential buyers, you may receive several offers. The first sign that your house is considered sold is when you, as the seller, accept an offer from a buyer. This is a critical turning point where negotiations come to fruition. It’s essential to carefully review the offer, including the price, contingencies, and any special terms.

Once you accept an offer, you will need to sign a formal contract or purchase agreement. This document outlines the terms and conditions of the sale, including the agreed-upon price, contingencies, and the closing date. When both parties have signed this agreement, it signifies a legally binding commitment to move forward with the sale.

Removal of Contingencies:

In most real estate transactions, buyers include contingencies in their offers to protect themselves from unforeseen issues or changes of heart. Common contingencies might include a home inspection, appraisal, or financing approval. A house can be considered sold when all the contingencies outlined in the purchase agreement have been met or waived by the buyer.

For instance, a home inspection may reveal certain issues that need to be addressed before the sale can proceed. As a seller, you might need to negotiate repairs or offer a credit to the buyer to cover the cost of fixing these issues. Additionally, financing approval is crucial for the buyer to secure a mortgage to purchase your property. Until the buyer’s financing is secured and all contingencies are removed, the sale is still subject to potential changes or cancellation.

Satisfying Financing and Appraisal Requirements:

The financial aspect is a critical component of any real estate transaction. For the sale to proceed smoothly, both parties must ensure that the buyer’s financing is approved, and the property appraises for the agreed-upon purchase price.

The buyer’s lender will thoroughly assess the buyer’s financial situation, creditworthiness, and ability to repay the loan. Any issues that arise during this process may lead to delays or even the cancellation of the sale. As a seller, you can help facilitate this process by ensuring your property is well-maintained and by providing necessary documentation to the buyer’s lender.

Appraisal is another essential step in the financing process. Lenders require an appraisal to ensure that the property’s value aligns with the sale price. If the appraisal comes in lower than the agreed-upon price, renegotiations may be required, or the buyer might need to secure additional funds to cover the difference.

Clearing Title Issues:

Before a house can be considered sold, it is crucial to provide a clear title to the buyer. A clear title means that there are no liens, encumbrances, or legal claims that could affect the property’s ownership. A title search is typically conducted to uncover any potential issues with the property’s title.

To protect both parties, title insurance is often obtained. This insurance policy provides coverage against any undiscovered title defects that may arise after the sale is complete. It is the responsibility of the seller to resolve any title issues before the closing to ensure a smooth transfer of ownership.

Closing the Deal:

The closing is the final step in the process, where the ownership of the property is officially transferred from the seller to the buyer. The closing date is specified in the purchase agreement and is typically conducted at a title company, escrow office, or attorney’s office.

During the closing, all necessary paperwork is signed, and funds are exchanged. The seller receives the agreed-upon sale price, and the buyer takes possession of the property. At this point, the house can be officially considered sold.

The closing process involves various parties, including the buyer, seller, real estate agents, attorneys, and representatives from the title company or escrow office. It’s essential to review all the closing documents carefully and ensure that the transaction adheres to all legal requirements.

Recording the Deed:

After the closing, the buyer’s attorney or title company will ensure that the deed is recorded with the appropriate government authority. Recording the deed provides public notice of the property’s change in ownership and helps protect the buyer’s rights to the property. This step is crucial for establishing the buyer as the official owner of the property.


A house is considered sold when all parties have agreed to the terms, contingencies have been satisfied or waived, financing and appraisal requirements have been met, and the closing has taken place. Until these conditions are met, there is always a level of uncertainty in a real estate transaction. It’s essential to work with experienced real estate agents or attorneys throughout the process, such as those from DealHouse, to ensure a smooth transaction and understand the legal obligations and implications involved. With DealHouse by your side, you can confidently move towards the final step of selling your house and embark on your new chapter in life.


Chris Chiarenza