What does sold subject to contract mean?

When searching for a property to buy, you may come across listings that are marked as “sold subject to contract”, but what exactly does STC mean?

In this article, we will explain:

• What it means when a property is sold subject to contract
• How often sold subject to contract sales fall through
• What ‘under offer’ means and the difference between sold STC and under offer
• What happens after a property is sold subject to contract
• Whether sold subject to contract prevents other offers being made on the property
• How long it takes to complete after sold STC

What does sold STC (or SSTC) mean?

When a property is sold subject to contract (abbreviated as STR or SSTC), it means that the seller has accepted an offer from a buyer, but the sale has not yet been completed. The property is still technically on the market and other potential buyers may still view it, but the seller has agreed to stop actively marketing the property while the sale is in progress.

What does sold STC mean for buyers?

For buyers, a property being sold subject to contract means there is less chance for them to make an offer on the property (because the property will no longer be actively marketed). However, there is still the possibility that the seller may take a higher offer – this is known as gazumping.

If the sale falls through for any reason, the property will be put back on the market and another buyer may have another opportunity to make an offer. It’s important for buyers to keep in mind that even though the property is technically sold, there is still a chance that they may be able to purchase it if the sale falls through.

What does sold STC mean for sellers?

For sellers, selling a property subject to contract means that they have accepted an offer and the sale is in progress, but it is not yet finalised. However, if the sale falls through, they will need to put the property back on the market and start the process over again.

How often do STC sales fall through?

It’s not uncommon for sales to fall through when a property is sold subject to contract. According to research by the property website Home Selling Expert, almost one in three property sales in the UK fall through after an offer has been accepted. The reasons for a sale falling through can vary widely, from issues with the buyer’s financing to problems discovered during the survey or legal process.

What does under offer mean?

Under offer means that an offer has been made on the property, but the seller hasn’t accepted the offer yet.

What is the difference between sold STC and under offer?

While sold STC and under offer share a similarity in that an offer has been made in both cases, the distinction lies in that, in the case of sold STC, the buyer has accepted the offer, whereas for under offer, the buyer is still deciding upon accepting the offer or not.

The distinction between these two statuses may be important if you are a potential buyer. If a property is marked as sold STC, it is less likely that the sale will fall through as contracts have already been exchanged. However, if a property is marked as under offer, there is still a chance that the sale may not go ahead.

What happens after a property is sold subject to contract?

After a property is sold subject to contract, both the buyer and the seller will work towards completing the sale. The buyer will typically have a survey done on the property and will arrange for a mortgage if they need one. The seller may also need to complete any outstanding legal paperwork, such as obtaining a Property Information Form or providing copies of planning permissions.

If any issues arise during this process, such as problems with the survey or the mortgage application, the sale may fall through. However, if everything goes smoothly, the sale will eventually complete and the property will officially be sold.

Can I still make an offer on a house if it is sold STC?

While a property is sold subject to contract, the seller has agreed to stop actively marketing the property. However, it is still possible for other buyers to view the property and make an offer. In some cases, the seller may decide to accept a higher offer from a different buyer, but they would have to break their existing contract with the first buyer.

It is worth noting that the exact terms of a sold subject to contract agreement may vary depending on the circumstances. For example, the seller may agree to a “lockout” period, during which they cannot accept any other offers.

How long does it take to complete after sold STC?

The time it takes to complete a sale after a property is sold subject to contract can vary depending on a number of factors. In general, it can take anywhere from a few weeks to several months for the sale to complete.

Some factors that can impact the completion time include:

• The complexity of the sale, for example, if any legal issues need to be resolved
• The length of the chain, which refers to the number of properties and buyers/sellers involved in the transaction
• The efficiency of the conveyancing process, which refers to the legal process of transferring ownership of the property
• Any delays caused by the mortgage application process or surveys.

How can House Buyer Bureau help?

There are a number of ways to avoid delays on a house sale, including selling to a cash buyer such as House Buyer Bureau – we have the funds to buy your property for cash in as little as 7 days. We offer slightly below market value, but there are no estate agent or legal fees to pay.

Chris

Chris

Chris has worked in property all his career, first as a successful estate agent before spotting a gap in the market for buying property directly from people looking for a simple, quick sale.

He has a passion for property and as an experienced valuer, has looked at well over 50,000 properties so far at HBB. He has extensive experience in property buying and regularly comments in the press on property matters, trends and promotes ways to simplify and speed up the selling process.

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