Eric Straatsma MS MHM
Copyrighted 2010, All rights reserved
Some listings on MLS or signage on a property may say Active CAPA. When you see this term, it stands for “Can Accept Purchase Agreement.”
This term is not used very often in this market, as it means that the Buyer who has an offer on that home, must first sell their home, in order to complete the purchase. This is a contingent sale, meaning that the Buyer will not go through with the sale unless they actually sell their home first.
If you see this on an MLS listing or signage, it may indicate that the home in question may stay in this phase for quite awhile. On the other hand, if you like the property, it may pay to watch it and see what happens, as this situation cannot go on forever.
In some cases, if the Seller gets a backup offer, they can turn around and ask the primary Buyer to fulfill their part of the agreement or back out of the deal. How this works depends on how the contract to sell is worded. If you have a Buyers Agent, he/she can call the Listing Agent/Broker and inquire further about this situation.
Contract language usually has time lines that a Buyer must proceed on a certain schedule, such as having their home under contract and then have their sale completed by a certain time period, or the contract is cancelled.
In this poor economy, a CAPA listing is not that common, so chances are you will not see one, but if you do, now you know what to do.
If you need a Buyers Agent, feel free to call or email me. Even if I am not local to you, I can help you find a broker or agent that will help you find, offer and close on a property of your choice. See Contact page.