If you’ve been browsing real estate listings in Utah or anywhere else, you may have come across a property labeled as “Active T/C.” At first glance, it sounds like just another bit of real estate jargon—but understanding what this means can be crucial whether you’re buying, selling, or just keeping tabs on the market.
Let’s break it down clearly and completely.
What Does “Active T/C” Stand For?
“Active T/C” stands for Active - Time Clause.
This is a specific status used in the Multiple Listing Service (MLS) to indicate that a property is technically under contract—but there’s a catch.
A buyer and seller have agreed on terms, but the seller wants the flexibility to continue marketing the property to other potential buyers. This is because the contract includes a “time clause” (sometimes called a kick-out clause) that gives the seller the right to accept another offer if a better or more qualified one comes along.
Why Would a Seller Use a Time Clause?
There are a few common reasons:
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Buyer has a home to sell before they can close (contingent offer)
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Financing is uncertain or slow-moving
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Extended deadlines in the contract (inspection, appraisal, or financing)
In these cases, the seller may feel like the deal is shaky or just taking too long. Listing the home as “Active T/C” allows them to keep their options open.
What Happens If a New Buyer Comes Along?
If you’re a new buyer and you’re interested in an “Active T/C” property, you can still make an offer! If the seller accepts your offer, they’ll give the original buyer a set amount of time (usually 24 to 72 hours) to remove their contingency and move forward.
If the original buyer can’t or doesn’t remove the contingency within that timeframe, they lose the home—and it goes under contract with the new buyer.
This is where the “kick-out clause” kicks in.
What It Means for Buyers
If you’re shopping for a home and see one listed as “Active T/C,” don’t count it out.
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You can still submit an offer — just know the seller has already accepted one and you’ll be in a backup position at first.
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It’s worth asking your agent how strong the original offer is, how long the time clause is, and what the odds are of it becoming available.
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Be ready to move fast. If you’re pre-approved and not contingent on selling a home, your offer might be very attractive.
What It Means for Sellers
For sellers, an “Active T/C” status provides flexibility. It shows the home is under contract—but still allows for showings and backup offers. This can:
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Protect your position if you’re unsure about the strength of the first buyer
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Create leverage to motivate the first buyer to move quickly or improve terms
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Keep momentum on your listing and avoid losing market exposure
A Quick Scenario
Let’s say a seller accepts an offer from a buyer who needs to sell their current home first. That buyer has 48 hours to remove their contingency if a better offer comes in.
Then another buyer makes an offer that’s non-contingent and ready to close in 3 weeks. The seller likes the new terms better, accepts the new offer as a backup, and gives the original buyer 48 hours to make a decision.
If the original buyer can’t remove their contingency in time, the contract is canceled and the new buyer moves forward.
Bottom Line
“Active T/C” might sound confusing at first, but it’s simply a smart tool used in the real estate world to keep options open. For buyers, it’s an opportunity to grab a great home that may still be in play. For sellers, it offers peace of mind while protecting their timeline and flexibility.
Curious about an Active T/C listing? Let’s talk! I’ll help you evaluate your options and make a move with confidence.
