Under Contract in Tennessee: Contingencies Explained

by George Scott

Short answer: In Clarksville and the surrounding Tennessee market, a home is under contract after the buyer and seller have fully signed a purchase agreement. The home is not sold yet. The parties still have to complete the contract’s deadlines and conditions, which may include inspections, financing, appraisal, title work, insurance, and sometimes the sale of the buyer’s current home.

A contingency is a condition written into that agreement. It can create a right to proceed, renegotiate, or terminate if a stated event occurs—but only according to the exact wording, deadlines, notice requirements, and remedies in the signed contract. A listing label does not create those rights.

What “under contract” means in the Clarksville market

Realtracs, the MLS used throughout much of Middle Tennessee, separates under-contract listings into two statuses. That local distinction is more useful than the generic “pending” or “contingent” labels shown on some consumer websites.

Realtracs status	What it means	Can buyers still tour it?
Active	The property is being marketed and offers are being accepted.	Yes, subject to showing instructions.
Under Contract—Showing	The parties have a binding sales contract, a contingency is pending, and the seller is still showing the home for backup offers.	Yes.
Under Contract—Not Showing	The parties have a binding sales contract and the seller is no longer actively showing the property, regardless of whether contingencies remain.	No.
Closed	The sale has been completed and reported as closed.	No.

Realtracs requires an accepted offer to be reported as an under-contract status within its rules, but an exception can apply when a home-sale contingency includes a right-of-first-refusal provision. Because third-party websites may rename or simplify MLS statuses, ask your agent whether the local record is Active, Under Contract—Showing, or Under Contract—Not Showing.

How Zillow, Realtor.com, and other portals may label the same home

Zillow commonly displays labels such as Contingent and Pending; its consumer guidance generally describes contingent or under-contract homes as having an accepted offer with conditions still open, while pending indicates a later stage. Realtor.com also uses consumer-facing terms such as Contingent, Pending, and Accepting Backup Offers. Redfin may show Under Contract, Pending, or Pending—Taking Backups, while Homes.com explains that “under contract” can function as a broad label covering contingent and pending stages.

Those labels depend on the MLS feed, the portal’s status mapping, and the timing of its update. Zillow’s support material specifically recognizes that an agent’s change to pending, under contract, or contingent may not immediately appear correctly on Zillow. For a Clarksville property, the Realtracs status and confirmation from the listing agent are more reliable than assuming a portal badge reveals which contingencies remain. The signed contract—not Zillow, Realtor.com, Redfin, or Homes.com—controls the parties’ rights.

What is a real estate contingency?

A contingency is not simply a reason someone would prefer to cancel. It is contract language tying a duty or remedy to a defined event. A useful way to read any contingency is to identify four parts:

The condition: What must happen—or fail to happen?
The deadline: By what date and time must it occur?
The required action: Must someone apply, inspect, object, provide documentation, or give written notice?
The remedy: May a party proceed, negotiate, terminate, extend, or claim earnest money?

If one of those pieces is overlooked, a protection that looked broad at the offer stage may be much narrower when a problem appears.

The main contingencies buyers and sellers should understand

Contingency	Buyer’s safety net	Seller’s practical concern	What to verify
Inspection	Allows the buyer to investigate condition and use the contract’s stated options if the results are unsatisfactory.	The seller may face repair, credit, price, or termination discussions, but does not automatically have to accept every request.	Inspection deadline, notice method, permitted responses, specialized inspections, and repair-resolution deadline.
Financing	Addresses what happens if the buyer cannot obtain the loan described in the agreement after making the required effort.	The seller is relying on the buyer, lender, property, and loan program clearing underwriting by the contract dates.	Loan type, application deadline, approval terms, rate or cost limits if any, documentation, and notice requirements.
Appraisal	Can address a value below the agreed price or a lender’s valuation requirement.	A low appraisal may trigger a request to reduce the price, but it does not automatically require the seller to do so.	Required value, gap language, response deadline, reconsideration process, and whether cash must cover a shortfall.
Sale of another home	Makes the purchase dependent on the buyer selling or closing on another property.	The seller takes on another transaction’s timing and failure risk.	Whether the other home is listed or under contract, required milestones, deadline, backup-offer rights, and any kick-out period.
Other property or closing conditions	May address title, survey, homeowner insurance, HOA documents, septic, well, flood, repairs, or another property-specific concern.	More conditions can add time or uncertainty, but unclear property issues can also threaten a closing later.	Exactly which condition applies, who orders the work, who pays, the deadline, and the remedy.

Inspection contingency: condition, not value

Tennessee does not require a home inspection before a residential sale. The Tennessee Department of Commerce and Insurance nevertheless describes an inspection as an important consumer tool and recommends checking that the inspector is licensed. An inspection is a visual evaluation of accessible systems and components; it is not a warranty and may lead to specialist evaluations.

The inspection report does not rewrite the contract by itself. The buyer must use the agreement’s procedures and deadlines to accept the property, request an agreed remedy, or terminate if that option is available. The seller can evaluate a request, propose different terms, or decline—again subject to the contract.

Financing contingency: preapproval is only the starting point

A preapproval helps a seller judge whether financing appears plausible, but the Consumer Financial Protection Bureau notes that it is not a guaranteed loan offer. Final approval can still depend on updated income, assets, debts, credit, employment, loan-program rules, the property, appraisal, title, and other underwriting requirements.

For buyers, the practical job is to apply on time, respond quickly to the lender, avoid financial changes that could disrupt underwriting, and provide any notice or denial documentation the contract requires. For sellers, the financing deadline and loan type can matter as much as the preapproval letter attached to the offer.

Appraisal contingency: a low value starts a decision, not an automatic price cut

An appraisal is an independent opinion of value used by a lender; it is not the same as a home inspection. If the value is below the purchase price, the lender may reduce the amount it will lend. Possible responses can include a reconsideration of value through the lender, a price change, additional buyer cash, a negotiated compromise, or termination. Which options are available—and what happens to earnest money—depends on the sales contract.

Sale-of-home contingency: one purchase depends on another closing

This contingency can help a buyer who needs proceeds or financing capacity from an existing home. It also exposes the seller to the condition, financing, appraisal, title, and closing risks of a second transaction.

Some agreements use a right-of-first-refusal or “kick-out” structure that lets the seller continue marketing the property and requires the first buyer to respond within a stated period if another acceptable offer appears. Do not assume the phrase alone explains the parties’ rights; the signed provision and Realtracs status must be reviewed together.

What happens after a Clarksville home goes under contract?

Several tracks normally run at the same time. The exact order and deadlines come from the agreement, but this is a practical working sequence:

Confirm the binding agreement and calendar every deadline. This includes earnest money, inspections, financing, appraisal, title, repairs, closing, and possession.
Deliver earnest money as required. The amount, holder, due date, and disbursement rules should be stated in the contract.
Begin financing and insurance work immediately. The buyer supplies lender documents and checks whether acceptable homeowner coverage is available.
Complete inspections and any specialist evaluations. The buyer then follows the contract’s notice and resolution procedure.
Complete appraisal and underwriting. Any valuation, condition, or loan issue must be addressed before the applicable deadline.
Clear title and property-specific items. Survey, HOA, septic, well, repair receipts, permits, or other records may matter depending on the home and agreement.
Prepare for closing. The parties review final figures, complete agreed work, perform the final walkthrough, sign, fund, and transfer possession as agreed.

Tennessee’s residential property disclosure is not a substitute for an inspection. Sellers should also promptly report material changes in the home’s condition to their agent and obtain legal guidance when a disclosure question could affect the contract.

Why earnest money is not an automatic refund

Earnest money shows the buyer’s commitment and is handled according to the purchase agreement. If a transaction terminates, the outcome depends on the contract, whether the contingency and notice requirements were satisfied, and whether the parties agree about disbursement.

The Tennessee Real Estate Commission says brokers must handle earnest money according to the contract. Its current consumer FAQ also says that, absent a compelling reason, funds should be disbursed, interpleaded, or turned over to an attorney to interplead within 21 calendar days after a written disbursement request. That 21-day rule is a process requirement; it does not guarantee that either buyer or seller automatically receives disputed funds.

Frequently asked questions about under-contract homes

Does “under contract” mean the home is sold?

No. A binding purchase agreement exists, but the sale is not complete until closing. Financing, inspection, appraisal, title, agreed repairs, and other contract duties may still be open.

Can a seller cancel because a higher offer arrives?

Not simply because the new offer is better. The first purchase agreement is binding, and the seller’s ability to terminate must come from that contract or applicable law. A seller may be able to accept a properly structured backup offer, but should not interfere with the existing agreement. A Tennessee attorney should address any disputed cancellation right.

Can a buyer back out after going under contract?

Only when the contract or applicable law provides a right to do so. An inspection issue, financing denial, low appraisal, or missed condition does not create an unlimited exit; the buyer may have to meet specific deadlines, efforts, notices, and documentation requirements.

Can I make an offer on an under-contract home?

You can ask whether the seller is accepting backup offers. In Realtracs, Under Contract—Showing specifically indicates that the property may still be shown for backups. A backup agreement should explain when it becomes primary and whether the backup buyer can continue shopping or withdraw.

Does an “as-is” sale remove the buyer’s inspection rights?

Not necessarily. “As is” generally addresses the property’s condition or the seller’s repair position, while inspection and termination rights come from the purchase agreement. The exact forms and addenda must be read together.

Does a cash offer have no contingencies?

No. A cash offer does not require a mortgage contingency, but it may still include inspection, appraisal, title, survey, insurance, home-sale, or other conditions.

How I help buyers and sellers manage contingencies

For a buyer, I review the offer structure and property information before signing, build a working deadline calendar, coordinate with the lender, inspector, title company, and other specialists, and help evaluate negotiation options when an issue appears. For a seller, I compare more than the price: financing strength, appraisal exposure, inspection terms, home-sale conditions, deadlines, closing date, and the value of a backup-offer strategy all matter.

If you are still planning, my Clarksville home buying guide and seller’s guide explain the broader process. When you are ready to evaluate an offer or prepare one, contact me for a buyer or seller consultation. I will help you understand the business terms and keep the transaction moving while directing legal, lending, inspection, title, insurance, and tax questions to the appropriate professionals.

Sources

Realtracs, “Definitions: Listing Status”, accessed August 24, 2026.
Realtracs, “My Listings: Change Listing Status”, accessed August 24, 2026.
Zillow, “Contingent vs. Pending: What’s the Difference?”, August 21, 2024; accessed August 24, 2026.
Zillow Help Center, “Why Isn’t My For Sale by Agent Listing Status Updating?”, updated November 13, 2025; accessed August 24, 2026.
Realtor.com, “What Does Active Contingent Mean?”, accessed August 24, 2026.
Realtor.com, “The House You’re Negotiating on Is ‘Accepting Backup Offers’—Now What?”, July 31, 2025; accessed August 24, 2026.
Redfin Support, “Status of Property”, accessed August 24, 2026.
Homes.com, “What Does Pending Mean in Real Estate?”, June 4, 2025; accessed August 24, 2026.
Consumer Financial Protection Bureau, “Find the Right Home”, modified December 12, 2024; accessed August 24, 2026.
Consumer Financial Protection Bureau, “Get a Preapproval Letter”, modified December 12, 2024; accessed August 24, 2026.
Consumer Financial Protection Bureau, “What Are Appraisals and Why Do I Need to Look at Them?”, modified March 12, 2025; accessed August 24, 2026.
Tennessee Department of Commerce and Insurance, “Purchasing a Home in Tennessee? What to Know About Home Inspectors”, June 30, 2021; accessed August 24, 2026.
Tennessee Department of Commerce and Insurance, “Miscellaneous FAQs”, updated August 1, 2026; accessed August 24, 2026.
Tennessee Department of Health, “Healthy Homes”, accessed August 24, 2026.

This article provides general educational information, not legal, lending, appraisal, inspection, title, insurance, or tax advice. Rights and remedies depend on the signed agreement and the facts of the transaction. Consult a Tennessee attorney or the appropriate licensed professional for advice about a specific issue.

George Scott, REALTOR®
Keller Williams Realty Clarksville
Tennessee License #377474
Cell: (931) 385-5195
Office: (931) 648-8500
2271 Wilma Rudolph Boulevard, Clarksville, TN 37040