See a Los Angeles listing marked “contingent” or “pending” and wonder what it really means for your move? You’re not alone. These labels signal very different risk levels, timing, and options for buyers and sellers. In this guide, you’ll learn what each status means in California practice, how MLS statuses work in LA, and what steps to take next whether you’re buying or selling. Let’s dive in.
Contingent vs. pending: clear definitions
In California, a home can be under a binding contract while still showing different statuses on the MLS. A contingency is a condition in the purchase agreement that must be satisfied before the sale can move forward. When a listing appears as “contingent” or “active under contract,” there is an accepted offer, but one or more contingencies remain. Sellers often continue to accept backup offers during this period depending on MLS rules and seller preference.
“Pending” usually means the buyer has removed material contingencies or the contingency periods have expired or been waived. The parties are working toward closing and the seller typically is not seeking new offers at this stage. The MLS status signals how far along the deal is and whether you still have a path to buy or sell.
Common contingencies in LA contracts
Los Angeles residential transactions commonly use California Association of Realtors forms. The most frequent contingencies you’ll see include:
- Inspection contingency: Time for general inspections and specialized checks like termite, roof, or HVAC. You can negotiate repairs or cancel if unacceptable within the agreed window.
- Financing contingency: Protection if you cannot secure a mortgage on agreed terms despite diligent effort and lender communication.
- Appraisal contingency: If the appraisal comes in below the purchase price, you can renegotiate, bring additional funds, or cancel depending on the agreement.
- Title and vesting contingency: Time to review the preliminary title report for liens, easements, or defects and require resolution.
- Sale-of-buyer’s-home contingency: You must sell an existing property first. In competitive LA markets this can be harder to get accepted without strong terms.
- HOA document review: For condos or HOA communities, time to review CC&Rs, budgets, minutes, and reserve studies.
- Other case-specific contingencies: Seller-performed repairs, termite treatment, environmental items, lender-required work, or specialized terms for probate, short sale, or bankruptcy.
How MLS status works in Los Angeles
MLS systems in LA use statuses like Active, Active Under Contract or Contingent, Pending, Temporarily Off Market, Withdrawn, Cancelled, and Sold. Here’s the practical breakdown for buyers and sellers:
- Contingent or Active Under Contract: There is an accepted offer and contingencies remain. Backup offers may be accepted if allowed by MLS rules and the seller’s instructions.
- Pending: Contingencies are removed, satisfied, or waived. The sale is moving toward escrow completion and sellers typically are not seeking new offers.
MLS labels can vary by system and brokerage practice. Always read the listing remarks and confirm with the listing agent whether backup offers are being accepted and which contingencies are still open.
Buyer playbook: your next steps
- Verify the exact status. Ask the listing agent what “contingent” means for that listing, which contingencies are open, and whether backup offers are welcome.
- Confirm timelines. Review the purchase agreement for contingency periods and how removal must be documented in writing.
- Gauge your risk before removing contingencies. Coordinate with your lender and inspectors first. Removing or waiving contingencies can make your offer stronger but increases the risk of deposit forfeiture if you later cancel without grounds.
- Use backup offers strategically. If the listing is contingent and open to backups, submit a clean, well-structured backup offer. Understand how your deposit will be handled and when your offer becomes primary.
- Set expectations for pending listings. When a property is pending, the odds of stepping in are lower. You can still ask about backup status, but focus on monitoring in case the current deal falls through.
Seller strategy: protect momentum and price
- Decide on backup offers during contingency periods. Staying “active under contract” while accepting backups can provide a safety net if the buyer fails to remove contingencies on time.
- Compare offers by contingency strength. Fewer or shorter contingencies can reduce risk and speed closing, though it may affect your buyer pool and price.
- Track and document contingency removals. Ensure all removals are in writing and coordinate with escrow and title for deposit handling and timing.
- Keep disclosures on schedule. You must deliver required disclosures, such as the Transfer Disclosure Statement and Natural Hazard Disclosure, which can influence negotiations and timelines.
Timelines, removals, and deposits
Contingency periods in LA are negotiated per contract rather than standardized. Local customs shape norms, but your agreement controls the deadlines. Removals are typically documented with a written addendum or notice. Once you remove a contingency, you usually lose the right to cancel based on that issue. If you later cancel without contractual grounds after removal, you may face deposit forfeiture and potential damages under the contract.
For buyers, this is why pre-approval, early inspection scheduling, and clear communication with your lender and escrow team matter. For sellers, diligent tracking of timelines and written removals helps prevent delays and protects your position if the buyer fails to perform.
Special considerations in Los Angeles
- HOA diligence: For condos and communities with associations, review budgets, reserves, CC&Rs, rules, and meeting minutes early. These documents can impact financing and insurance.
- Title and escrow coordination: Title clearance, lien payoff, and vesting details are central to smooth closings. Work closely with your escrow and title teams to keep items moving.
- Local practices and MLS rules: Status-change timing and whether backup offers are permitted depend on MLS rules and the seller’s instructions. The listing agent must update the MLS promptly when contingencies are removed and statuses change.
- Market conditions: In competitive segments of LA, buyers sometimes shorten or waive contingencies to win. Balance competitiveness with risk management aligned to your goals and financial plan.
Smart next steps
- Buyers: Clarify the listing’s status, confirm which contingencies remain, and map your timeline for inspections, appraisal, and loan approval before considering any removals.
- Sellers: Decide whether to accept backups while under contract, ensure disclosures and required documents go out promptly, and confirm every contingency removal in writing.
- Everyone: Align strategy with your broader financial and lifestyle goals so your move sets you up for long-term success.
If you want a clear plan tailored to your situation in Los Angeles, let’s talk. Get your free home valuation and book a consultation with Michael Ferrera for concierge guidance from offer through closing.
FAQs
What does “contingent” mean on a Los Angeles listing?
- It means the seller accepted an offer and one or more contingencies remain. The seller may accept backup offers, depending on MLS rules and the seller’s instructions.
What does “pending” mean in LA real estate?
- It means contingencies are removed, satisfied, or waived and the sale is moving toward closing. Sellers typically are not seeking new offers at this stage.
Can I make an offer on a contingent home in Los Angeles?
- Often yes. Many contingent or active-under-contract listings accept backup offers. Confirm with the listing agent and specify that your offer is a backup.
Is it possible to buy a pending home in Los Angeles?
- It is less likely. You can ask if the seller will accept a backup, but active offers are uncommon once a listing is pending.
What happens if I remove contingencies and then cancel?
- If you cancel without contractual grounds after removing contingencies in writing, you may forfeit your deposit and face potential damages under the contract.
Are contingency timelines standard in Los Angeles?
- No. Periods are negotiated in each contract. Local norms exist, but your signed agreement controls deadlines and removal requirements.
Do sellers still have to disclose issues if a buyer waives inspection?
- Yes. Statutory disclosures, including the Transfer Disclosure Statement and Natural Hazard Disclosure, are still required under California law.
