SSTC - What does sold subject to contract mean?

What does it mean for a property to be sold subject to contract?

When a property is sold subject to contract it means that the homeowner has accepted an offer however the paperwork has not yet been completed therefore people can still enquire about a SSTC property. Technically it is still 'available' although it may no longer be being actively marketed. The property has only been sold once the signed contracts have been exchanged and the transaction has completed.

Gazumping

GazumpingIf you find a property that is sold subject to contract, there is nothing to prevent you calling up the estate agents to enquire about the property and strength of the offer. The agent will most likely keep your details on file and be on the phone to you straightaway should the process fall through. Depending on the vendor and the agent there is also the opportunity to go in with a higher offer at this stage. This is frowned upon by many agents although legally they are obligated to pass on any higher offers to the vendor.

Protection from any problems

The STC phase gives the vendor the freedom to accept higher offers or pull out at any point should their situation changes, and it can also protect the buyer if any potential concerns are flagged in the survey for example there could be structural problems or complications with the deeds. It gives the opportunity for the buyer to negotiate a reduced offer or withdraw completely if they feel the concerns are too risky for them to proceed.

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Published on 21 April 2016

Source Trinity Sales Wakefield

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