September 8, 2023
The property market can be full of confusing jargon, especially when buying or selling a home. One term that often crops up is SSTC, or “Sold Subject to Contract.” In this article, we’ll demystify what this phrase means, explore whether it’s final, and understand when a property might come back on the market. We’ll also delve into whether you can make an offer on a SSTC property, and if the buyer or seller can change their minds, highlighting the difference between SSTC and being “under offer.”
Understanding SSTC
SSTC stands for “Sold Subject to Contract.” This term is used in the property market to indicate that an offer on a property has been accepted by the seller, but the legal contract has not yet been completed. It’s a provisional agreement that still requires the finalising of legal paperwork. Essentially, the term outlines an intention to purchase, subject to the legal process.
Is SSTC Final?
An SSTC status is not final. Until contracts are exchanged, either party can still back out without any legal ramifications. This leaves room for negotiations or changes in circumstances. Even though a property might be listed as SSTC, the sale is not guaranteed until the contracts are formally exchanged.
When Can a Property Come Back on the Market?
If an issue arises during the conveyancing process or the buyer or seller changes their mind, the property may come back on the market. Common reasons include disagreements over price, failure in securing a mortgage, or unexpected findings from a property survey.
Can You Make an Offer on a SSTC Property?
It is indeed possible to make an offer on a property that’s SSTC. While it’s considered less common, a seller might entertain a new offer if it’s significantly higher than the existing one. This could lead to a scenario known as “gazumping,” where the original buyer is outbid. Estate agents may or may not continue to market a property that is SSTC, depending on their practices and the seller’s preferences.
Buyer and Seller Flexibility
Both buyer and seller have the flexibility to change their minds before contracts are exchanged. Since SSTC is not legally binding, either party can walk away from the agreement without penalty. However, doing so might have practical consequences, such as losing trust with the estate agent or other buyers and sellers.
SSTC vs Under Offer
The terms “Sold Subject to Contract” and “under offer” are often used interchangeably, but they may be used differently by different estate agents. Typically, “under offer” means that an offer has been made but not yet accepted, while SSTC means that an offer has been accepted but contracts have not been exchanged. The distinction can vary between estate agents, and the lines between the terms can blur.
Navigating the intricacies of SSTC can be complex, but having a skilled estate agent by your side can make all the difference. If you’re looking to buy or sell a property and need clear, expert guidance through the process, don’t hesitate to get in touch with our experienced local property team today. We’ll guide you every step of the way, ensuring a smooth and transparent transaction.
This is for England & Wales only.