Once you’ve secured an accepted offer, whether you’re the buyer or the seller, it’s a satisfying feeling. At this point, the property moves from being “under offer” to “SSTC” (Sold Subject to Contract). But what exactly does “sold subject to contract” mean? What legal implications does it carry, and does it signify that the transaction is finalised? Keep reading to learn more.
Sold Subject to Contract (SSTC) – What does it mean?
Sold Subject to Contract (STC or SSTC) denotes that a property seller has agreed to the buyer’s offer, essentially indicating a provisional sale of their property at an agreed upon price. However, the property hasn’t been formally sold as the contract remains pending signature and exchange.
Does “SSTC” indicate that the property is already sold
In the UK, any agreement to buy or sell property isn’t legally binding until contracts are exchanged. Hence, the term “sold subject to contract” (SSTC) is used. Essentially, “sold STC” signifies that there’s an agreement between the parties, but it’s the contract that grants it legal validity.
How does “SSTC” differ from “under offer”?
The contrast between “Sold Subject to Contract” (STC) and “under offer” primarily lies in the level of commitment. When a property is labelled as “under offer,” it implies that the owner is contemplating an offer from a prospective buyer. On the other hand, if it’s “Sold STC,” it indicates that the owner has agreed to sell the property based on an offer.
However, in both scenarios, there’s no legally binding contract established yet. Consequently, the property hasn’t been formally sold according to the law, and the current legal owner retains ownership.
How Long is the Process from SSTC to Completion?
The transition from “sold subject to contract” to finalising the sale by exchanging contracts doesn’t adhere to a fixed timeline. Nevertheless, once an offer is accepted, both parties typically aim to progress as quickly as possible. At the time of writing, the average duration for completing a property sale in the UK is approximately three months, according to recent analysis.
If a House is SSTC Can I Still View It?
You’re allowed to view a property even if it’s marked as “sold subject to contract” (SSTC). The seller isn’t legally obligated to remove the property from the market until contracts are formally exchanged. However, potential buyers are often hesitant to view a property listed as sold STC because it suggests a strong likelihood of a pending sale. Unless a new buyer is prepared to engage in gazumping (see below), they’re unlikely to show interest in the property.
Is It Possible For A Seller To Withdraw From An Offer They’ve Already Accepted?
In England, sellers have the legal right to retract an accepted offer at any point before the contracts are finalised. However, in Scotland, there are distinct regulations, and withdrawing from accepted offers may incur financial penalties.
Is It Possible For A Buyer To Withdraw From An Offer After It Has Been Accepted?
Similar to the seller’s ability to withdraw, buyers also retain the option to pull out of the transaction, even after reaching the “sold subject to contract” (SSTC) phase. If you’ve committed to purchasing a property and subsequent searches or surveys reveal concerning issues, or if your financial circumstances undergo changes, you still have the option to withdraw from the purchase at this time.
Can a House Sale SSTC Fall Through?
An agreement marked as SSTC can collapse, which often happens. The buyer might not secure approval for a mortgage, the seller could have a change of heart, or they might accept a better offer from someone else. Additionally, unforeseen issues uncovered during the conveyancing process might prompt the buyer to withdraw.
In essence, being sold STC doesn’t ensure the completion of the property sale. While it strongly suggests the sale will proceed, it doesn’t guarantee it.
Is It Possible To Submit An Offer For A Property Marked As Sold Subject To Contract (STC)?
Legally, there are no restrictions on viewing or making an offer for a property that’s already marked as sold subject to contract (STC). If your offer is compelling enough, you might persuade the seller to accept it.
However, sellers might hesitate to consider offers once they’ve committed to a firm offer. Entertaining a new, potentially higher offer can appear risky once the process of selling to someone else is underway.
What Occurs After A Property Is Marked As Sold Subject To Contract (STC)?
Once the seller has agreed to a buyer’s offer, the property transitions to sold subject to contract (STC). Subsequently, the conveyancing process commences, involving solicitors and potentially other professionals to gather all other important information about the property. Following this, the contract is finalised, and if both parties are satisfied, arrangements are made for signing.
As previously noted, this process can take some time. It’s advisable to allocate approximately 12 weeks from the “sold STC” stage to the actual completion of the property sale.
How can I sell my house fast?
At Olivia Rose Estate we are here to help you sell your house fast. We can offer a guaranteed cash purchase for your property in a timescale that suits you. It could be a couple of weeks, or even just a few days. You no longer have to pay estate agents fees and deal with the potential long delays of a traditional sale process. It is not uncommon for house sales and purchases to fall through due to broken chains or mortgages not being approved at the last minute.
We will help guide you through the process of selling your home, whatever your reason for selling. From the initial valuation to the final completion date, rest assured you are being guided by trusted property experts who are here to help you get the most out of your house sale and ensure you have a hassle-free experience.
