The difference between under offer and sold subject to contract is easily explained.
Under offer is really an advertising term used by estate agents. It means an offer has been accepted. So what is the difference between under offer and sold subject to contract? Sold Subject to Contract is really the same thing. Under Offer is when a prospective buyer likes a property enough to put an offer in (usually below the full asking price), this is called ‘under offer’ and it means the home owner has yet to decide if they are going to accept it or not. If the offer is subsequently accepted, then the property is Sold Subject to Contract (Sold STC). At this stage, the paperwork is not yet complete, so another buyer may make enquiries as the sale is not complete until signed contracts are exchanged. On average about 15% of Sold STC properties come back on to the market as the sale fails to complete.
As you can see the difference between under offer and sold subject to contract is fairly straight forward. Even if sold subject to contract it can still be worth making enquiries This could happen for all sorts of reasons. The buyer does not like the information returned on the local searches, their mortgage offer is not approved and/or the survey throws up information that makes the mortgage offer impossible to proceed. The system is different in Scotland where, once offers are made they are leggaly binding if accepted, there is no ‘subject to contract’ stage. Occasionally, the ‘missives’ (the name for the paperwork in Scotland) may fall through, hence the term Sold Subject to Conclusion of Missives (Sold STCM). An estate agent is legally obliged to pass on all offers received Any offer made on a property is almost always based on the results of surveys, mortgage approvals and, of course, a satisfactory contract. An estate agent has a legal obligation to pass on any offer put to them no matter what they may think of it themselves. Only when an estate agent holds a signed letter from an owner saying that no offers above or below a set figure should be submitted is the agent released from this legal requirement. An agent must also inform the owner of the existence of all offers and confirm all offers in writing to the owner as soon as is reasonably practicable, which is usually taken to mean the same working day.
So you should now understand or at least have a better understanding of the difference between under offer and sold subject to contract. If you’d like to know more contact us at www.zevizoproperties.com or leave a comment below.