Buying and selling property is filled with a variety of buzzwords, jargon and terminology that is often confusing. “Under offer” and “Sold STC” are two such terms, and whilst both sound like they could allude to the same thing, they are, quite different. You’ll often see one or the other on an online listing or on the for-sale sign standing outside a home. Both may give the impression that the transaction is a done deal and that it’s only moments away from completion. This isn’t strictly true, and in this blog, we explain the key differences between the two and how they play a role in your property plans.
What does under offer mean?
If you see a property as “under offer”, it means that a buyer has had their offer accepted by the seller. Nothing is legally binding, and either party can walk away if they wish. Other buyers can still step in with a better offer if they want. This is where the original offer has been gazumped, and, even though it is totally above board, it’s something that many involved in the sale would see as unfair.
Under offer is also sometimes seen as a tactic used by estate agents to draw more attention to the property. By showing that an offer has been made on a desirable property, it can encourage others to try their luck with an offer of their own that surpasses any other offers that have been made.
What does sold STC mean?
Sold STC, or sold subject to contract, is where the property has been sold, but contracts haven’t been signed. The legal work is being conducted, but we aren’t yet at the stage where a sale is legally binding. This means that other buyers could still make an offer, but the chances of it being accepted are perhaps a little less, as the legal side of things is now being worked through.
Can I make an offer on a property that is under offer?
Yes. When a property is under offer, an offer has been accepted, but nothing is yet legally binding. This means you can step in and make an offer if you want, and if it is higher than the current leading bid, the estate agent has an obligation to pass it on to the seller.
Could I make an offer on a property that is sold STC?
You could still make an offer on a property that is sold STC, but your chances of it being accepted may be slightly smaller. At this stage, the sale is still not legally binding, but depending on how far the legal process has progressed, a seller may no longer be willing to accept any offers. That being said, if your offer is particularly enticing, you might be able to persuade them.
How long from under offer to sold?
From under offer to sold isn’t always quick. There is plenty of work to be completed by estate agents and solicitors before. The buyer will probably have some loose ends to tie up on their side before being able to move forward. On average, moving from under offer to sold can take anything from two to six months. Mortgage approvals, chain issues, conveyancing and more can all disrupt a sale, and in some cases, where there are no hitches, speed them up. Each case is different, and whilst delays are common, a quick transition from under offer to sold is also possible.
How long from sold STC to sold?
When a property is sold STC, things have progressed from being “under offer”, but not to the extent where the transaction has sped up considerably. This stage can take around three to five months, but in complex cases, where conveyancing has uncovered issues, chains have broken, or there are funding problems, it can take longer.
Can a property sale fall through after it’s sold STC?
It certainly can. At this stage, nothing is legally binding, and either party could walk away. However, at this stage, more costs have likely been accrued and walking away may not be the best decision, unless necessary. However, if the survey has uncovered issues or mortgage approval is problematic, it can often be best to walk away and start again.
What is the main difference between under offer and sold STC?
The main difference between under offer and sold STC is simply the stage the sale is at. When a home is under offer, an offer has been accepted, but it is not legally binding. When a property is sold STC, work begins between you and your solicitor to move forward after an offer has been accepted. The sale isn’t legally binding, and either party can walk away at either stage if they wish.
Does sold subject to contract work the same in Scotland?
No, and even though we deal with properties in the Epsom area, we’ve had many people sell property locally before moving to Scotland. If your plans are the same, it’s essential to have an understanding of how sold STC works over the border. In Scotland, when a purchase offer is made and accepted by the buyer, the transaction becomes legally binding. However, issues can often arise during the legal process, and this can see a property purchase stall. In this instance, the property is listed as “Sold STCM” or “Sold Subject to Conclusion of Missives”. This means new offers can be made on the home with the initial buyer loosing out.
Cairds is the leading independent estate agents in Epsom. With many years of experience, our award-winning team makes it easy for you to sell property or find property to buy in Epsom. Thanks to our extensive local knowledge, we understand the market, making sure you sell or buy at the right price and at the right time. With comprehensive conveyancing services, independent mortgage advice and landlord services available too, we combine all aspects of property to make sure each stage of your journey is stress-free. Contact us today to find out more.