What is the difference between under offer and sold STC?
I have had a offer of mine accepted but it is still being advertised as Under offer? If the seller has accepted the offer should the estate agent & Zoopla etc not be advertising it as Sold STC?
Asked on Feb 21 2011,
General in Dagenham |
Under offer is the same as Sold STC (subject to contract).
Answered on Feb 22 2011,
I agree with above, under offer means an offer has been accepted, STC should really mean things have progressed a little further but ultimately it is the same thing.
Answered on Feb 23 2011,
Under offer is really an advertising term used by an agent rather than a legal term. Technically, a English or Welsh agent (different rules apply in Scotland), can only describe a property as 'for sale', 'sold subject to contract', 'exchanged' or 'sold'. However, in recent years, it has become normal working practice to describe 'sales' as 'under offer' or similar and this is accepted by trading standards officers etc. In effect, 'Sold STC' is the same as 'Under offer'.
The term subject to contract is/ should be used because, in simple law, once an offer has been accepted, that signifies that the transaction has been completed (like handing over money for a loaf of bread in a shop) and ownership has passed from the original owner to the person who has made the offer.
In property, though, the Law is a little more complex and the offer is almost always based on the result of surveys, mortgage approval and, of course, a ssatisfactory contract. Hence the term, subject to contract.
Did you know: Anyone can offer on a property and an agent has a legal obligation to pass on that offer; no matter how 'silly' the agent or owner may consider that offer to be. Only when an 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 is also required to inform the owner of the existance of all offers and, to confirm all offers in writing to the owner 'as soon as is reasonably practicable'; which is usually taken to mean the same working day.
Hope this helps :)
Answered on Feb 28 2011,
A property is under offer when a homebuyer has made a formal offer to purchase the property but the homeowner has not confirmed whether to accept.
If the offer is rejected then the property remains on the market until the next formal offer is made at which point the homeowner must again decide whether to accept the offer or reject it.
If the offer is accepted then it becomes 'Sold Subject to Contract' (Sold STC).
Sold STC and Sold STCM
Sold 'Subject to Contract' (STC) means that the homeowner has accepted an offer from a buyer but the paperwork is not yet complete.
You can still enquire about a Sold STC property as the sale is not complete until the signed contracts are exchanged. Technically the property is still available.
It may still be worth contacting the estate agent to discuss the strength of the accepted offer, particularly as there is no legal obligation on homeowner or homebuyer to complete the sale. On average about 15% of Sold STC properties come back on the market after the sale has failed to proceed.
The house buying and selling system in Scotland is slightly different in that once offers are made they are legally binding if accepted; there is no 'subject to contract' stage. However the concluding paperwork (known as missives) may in rare cases fall through hence we use Sold Subject to Conclusion of Missives (Sold STCM).
Answered on Mar 28 2012,
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