What is the Difference Between Under Offer and Sold STC?
The definitions of Under Offer and Sold STC are very similar. They can be exchanged with each other, and many buyers, sellers and agents do. Although the differences are mild, there are some.
* Under Offer
Under Offer is a term used by real estate agents to indicate that the seller has accepted the offer. In some cases, the quoted price is usually lower than the asking price.
* Sold STC
Sold STC (subject to Contract) means that the owner of the property has accepted the offer from the buyer, but the paperwork and processes required to make the sale legally binding have not been completed.
The difference between Under Offer and Sold STC
It is necessary to first understand that the meaning of “Sold STC(subject to Contract)” or sstc refers to only one thing. In this regard, being below the offer price means that interested buyers find a property interesting and are therefore willing to make a bid. Usually, the buyer’s offer is lower than the price set by the seller. This is what the term “Under Offer” implies. This means that the person wishing to sell the property has not yet decided whether to accept the bid from the interested buyer. If the seller is interested in the offer and chooses to accept it, the real estate agent refers to the property as Sold STC or sold subject to contract.
In the past few years, the alternative phrase “Sold subject to Contract’” has become common, sometimes abbreviated as “Sold STC.” In practice, all this means that the offer for the property has been accepted, but the contract has not yet been exchanged, so it can actually still be purchased.
Please note that acceptance does not mean that the paperwork has been processed. At this stage or at this moment, the only thing the buyer does is to accept the offer. Therefore, other interested buyers are welcome to continue to inquire about the property. Only when all the relevant parties come together and sign the contract will it be deemed to have completed the sale. Then the contract needs to be exchanged. Your offer has been accepted. So it is an “Under Offer”. However, before the contract is exchanged, either party can change their minds, so the offer is “subject to contract.”
Under Offer vs Sold STC
There may be a subtlety that when using Under Offer, you may be a little dissatisfied with the offer, which may prompt the supplier to accept another offer-mainly as a marketing strategy to maintain interest in the event of a failed sale.
* Under Offer
When the buyer has formally offered to purchase the property but the owner has not yet confirmed whether to accept it, the property is in the quotation. If the offer is rejected, the property will remain on the market until the next formal offer is made, at which time the homeowner must again decide whether to accept or reject the offer. If the offer is accepted, it becomes “Sold subject to Contract” (Sold STC). Under offer means that the potential buyer of the property has made an offer, but the seller has not yet accepted the offer. This basically means that the property is one step behind the sale of sold stc.
* Sold STC and Sold STCM
“Sold subject to Contract” (Sold STC) means that the homeowner has accepted the buyer’s offer, but the paperwork has not yet been completed. You can still inquire about Sold STC properties that have been sold because the sale has not been completed before the exchange of the signed contract. Technically, the attribute is still available. It may still be worthwhile to contact a real estate agent to discuss the intensity of accepting an offer, especially since the homeowner or homebuyer is not legally obligated to complete the sale. After the sale failed, an average of about 15% of the Sold STC properties were relaunched on the market.
The house buying and selling system in Scotland is slightly different. Once an offer is made, if it is accepted, it will be legally binding; there is no “subject to contract” stage. However, in rare cases, concluding paperwork (called missives) may fail, so we use Sold subject to Conclusion of Missives (Sold STCM).
Can you still make an offer on a house that is Under Offer or Sold STC?
* House that is Under Offer
When the house is quoted, you can still offer to buy it because the contract has not yet been exchanged. The real estate agent is obliged to make all the offers, but the seller does not have to accept the new offer or take viewings.
* House that is Sold STC
You can still make an offer for a house that has already Sold STC, because the property is still valid for purchase. The real estate agent must make all the offers before the contract is exchanged, but the seller does not have to accept the offer made after their house is Sold STC, nor does it have to take viewings.
It is always worthwhile to contact a real estate agent to discuss the strength of the accepted offer for the house you are interested in. If the supplier does not accept further review, you should always explain your interest to the real estate agent. According to Rightmove’s average approx. 15% of Sold STC or Under Offer properties are re-launched on the market after a failed sale.
Advice on avoiding gazumping
At the time of writing, once a property is deemed to be Sold STC, there is still nothing in the law that can prevent further bids and acceptances. This practice is often referred to as “gazumping”. Being gazumping is a terrible situation of injustice and immorality, but unfortunately, it is not illegal.
From the buyer’s point of view, instead of being satisfied with the Sold STC, it is better to ask the seller through their broker whether they are willing to withdraw the house completely from the market. This is the best course of action, providing all the necessary checks and verifications to ensure that the buyer is in the right position to execute their offer.
Originally published at https://www.tlw.com.