Gabbi knew that real estate was the right career from the start. She is now dual licensed in both Kentucky and Ohio. She had her first sale within a month of getting licensed and hit her first million in volume within her first 6 months. She will have her real estate license for the rest of her life. Call her anytime if you have questions about becoming a real estate agent. She loves to share her passion for real estate with others!
What is a PEnding Contract?
A pending contract occurs when an offer presented by the buyer's agent to the listing agent is accepted. Once that offer has all parties’ signatures then you have an "executed" or “pending” contract. The deal could still potentially not make it to closing for various reasons including the buyer failing to obtain financing, an unexpected negative inspection report, or an under-valued property appraisal.
A pending contract is a legal binding document, each portion of the contract is going to impact your client's time, money, and peace of mind. Be sure to communicate with your client what each section means, what their options are, and how the final result will impact their bottom line at closing day. Read here if you would like a refresher on how to write a purchase contract from our previous blog on the Career Corner.
If either party counters or changes any part of the initial offer, you will need to communicate that change to your clients and explain how this impacts their side of the transaction. If your client agrees to these changes, then both parties must initial next to the amended text in the contract to prove that both parties acknowledge and accept these alterations to the original contract.
What happens after you get your client under contract? Below is a detailed transaction timeline for new real estate agents to review. Use this template to make sure you that you do not miss a deadline and share with your clients so that they are informed on how their real estate transaction transpires. Add in your client's specific dates when you present this to them so that they can be prepared for each step. Missing a deadline could push out closing or worse, cost your client their earnest money for not staying within the contracts agreed parameters. It is your job, as your client's representation, to guard their best interests and keep everything on track according to the executed contract. The better the communication, the smoother things go.
Your first step as the real estate agent in this transaction is to make sure that the executed contract has all signatures needed and there are no misunderstandings or blanks where there shouldn't be.
Then, use the contract to map out the deadlines for these action items:
- Contract Acceptance date. When all signatures are completed on contract.
- Pre-preapproval Letter Submission Date. This letter should be issued to your client well before you write an offer. Your client's pre-approval letter should be submitted to the listing agent with their purchase contract, or at the very latest within 3 days of obtaining an executed contract. Usually this deadline is specified in the purchase contract.
- Earnest Money Submission Date. If you are the buyer's agent, collect the earnest money from your client and return it to your broker. Written verification of the acceptance of earnest money must be recorded by the buyer's agent and submitted to the listing agent by this specific date. The buyer's agent's admin will deposit it into a brokerage account and they will be in charge of either disbursing it at closing, potentially returning it to your client, or potentially allocating it to the seller depending on how the transaction conspires.
- Inspection Deadline. This is the time permitted to have a formal inspection of the real estate. If your client requires additional specific inspections (for example, a termite inspection, a plumber, a electrician, or a structural engineer), then these inspections must be completed before the original inspection deadline. If this is not possible, then you must write a contract addendum that states that the inspection period will be extended for "x" amount of days. This addendum must have signatures from all parties who are agreeing to this change.
- Inspection Negotiations Deadline. This is a window where you can negotiate changes to the real estate or a price reduction based on the results of the inspection. If both parties cannot come to an agreement at this point, then you must write and obtain signatures from all parties on a termination of contract that outlines the result of this transaction and names who receives the earnest money.
- Loan Approval Deadline. The buyer must obtain loan approval to be issued financing for this purchase by this date and the buyer's agent must report written verification to the listing agent.
- Closing Date. When the property is transferred from buyer to seller.
- Occupancy Date. When the buyer obtains occupancy for their new property. This is usually on the same day as closing.
Put these dates in your calendar and do not miss any of them. If you know you will not make any of these deadlines, then be sure to communicate with the listing agent and write an addendum to the contract that amends that date. If you miss any these dates, it will impact your client’s position in purchasing the home, possibly cost your client money, or could leave you subject to a fine from the MLS.
Action items for your client (the buyer):
- Submit loan application to their lender and obtain pre-approval letter
- Signature original contract and/or initial any contract changes
- Return all additional paperwork to their real estate agent
- Write an earnest money check to buyer’s brokerage
- Order an inspection
- Review inspection report and decide what points must be addressed before continuing the transaction
- Ask loan officer for monthly payment estimate
- Ask loan officer for total amount of closing costs
- Submit full loan application and send back to loan officer
- Purchase homeowner’s insurance
- Purchase title insurance
- Review settlement sheet
- Prepare wire before closing
- Compete final walk-through of property
- Sign all required closing documentation
Action items for their loan officer:
- Approve loan application
- Issue pre-approval letter
- Obtain disclosures & executed contract
- Process loan
- Order appraisal
- Deliver to underwriter
- Issue wiring instruction
- Issue clear to close
Action items for you (the buyer’s agent):
- Collect all paperwork from the buyer
- Pre-approval letter
- Executed contract
- All disclosures
- Submit all paperwork to your admin
- Collect earnest money check and deliver it to your admin of managing brokerage and submit proof of acceptance to listing agent
- Send executed contract to the buyer’s loan officer
- Send executed contract to the title company
- Attend inspection
- Review inspection report
- Negotiate any inspection amendments
- Notify listing agent of client’s loan approval
- Schedule closing
- Schedule final walk-through property
- Attend closing
Do not be overwhelmed by the workload, just stay organized and communicate daily with the listing agent, the buyer, the loan officer, your admin, and the title company. Keep a calendar for each client and check it daily. You’ve got this! Maybe one day you’ll have enough clients to hire a transaction coordinator and these mundane tasks will be of the past.
About the Author
Recent Posts
If you’re thinking about getting your real estate license, you might be wondering how long it takes and how much it costs. The process varies by state, but here’s a general timeline with expected expenses to help you plan ahead.
Understanding real estate market indicators is essential for making informed decisions, whether you're a buyer, seller, investor, or real estate professional. By analyzing key metrics, you can gauge market health, anticipate trends, and effectively communicate insights to clients and audiences.
Real estate is a career that offers flexibility, unlimited earning potential, and the ability to work well into your later years. However, unlike traditional jobs with employer-sponsored retirement plans and steady salaries, real estate agents must take charge of their own financial future. As you age in the industry, planning for taxes, retirement, and financial stability becomes even more critical.
If you're thinking about becoming a real estate agent in 2025, you're in good company! Real estate is a dynamic and rewarding career with flexible schedules, unlimited earning potential, and the opportunity to help people find their dream homes. But before you start selling houses, you'll need to get a license. Here’s a comprehensive guide on what it takes to become a real estate agent in the U.S. in 2025.
In real estate, your personal brand is everything. It’s how clients perceive you, trust you, and ultimately choose you over the competition. Whether you're an agent just starting or a seasoned pro looking to refine your identity, creating a strong and recognizable brand is key to long-term success. Let’s dive into what it takes to establish and maintain an impactful personal brand in real estate.
If you’re considering a career in real estate and you’re looking at both Ohio and Kentucky, you’re not alone. I’ve worked in both states, and while they share some similarities, there are key differences in licensing requirements, market conditions, and career opportunities that every aspiring agent should know. Understanding these differences can help you decide which state is the right fit—or if getting licensed in both makes sense for your goals.
Let's Stay Connected
Follow us on and become part of the PREC community
Never miss a tweet by connecting with us on Twitter
Check our our posts about trends in real estate industry and market
