What does under contract or pending mean?

Under contract and pending both mean a seller has accepted an offer and the home is in escrow working toward closing. Under contract typically refers to the early stage when the buyer is still in the inspection period and contingencies have not yet been removed or satisfied. Pending usually means contingencies are complete and the transaction is moving to closing, though it can still fall through if financing, title, or final walkthrough issues arise. In Arizona, the default inspection period is 10 days starting the day after contract acceptance. During that time the buyer can cancel for almost any reason. Once contingencies are removed, backing out becomes much harder without losing earnest money.