Understanding ‘sold STC’ – what it means and what you can do

A Sold STC sign in front of a row of modern red-brick houses

When you’re exploring the property market, chances are you’ve come across the term “sold subject to contract” (sold STC). For those unfamiliar, it might sound a little technical or confusing. However, understanding what it means and how it works is crucial whether you’re buying or selling a property. In this article, we’ll break it all down for you. From its meaning to whether you can still make an offer, and even why sales sometimes fall through, we’ll explore it all.

What does ‘sold STC’ mean?

The term ‘sold subject to contract’ (often shortened to sold STC) means that a seller has accepted an offer from a buyer. At first glance, this might suggest the property is officially off the market, but that’s not entirely the case. At this stage, no legally binding agreements have been signed, and the sale is far from guaranteed. Instead, it’s a sign that the property is progressing toward a sale, with several essential steps still to be completed.

During the sold STC stage, the buyer arranges surveys, engages a solicitor to handle legal checks, and works on finalising their mortgage. The sale is not final until all of these steps are completed and contracts are exchanged. In England and Wales, either the buyer or the seller can back out at this stage without facing any legal consequences.

Relates: Can you sell a house without a gas safety certificate 

Can I make an offer on a sold STC property?

Yes, you can make an offer on a property marked sold STC. Many assume that once a property is labelled sold STC, it’s completely unavailable. However, unless you’re buying in Scotland, that’s not the case. Until contracts are exchanged, the property is still legally on the market. This means you can express your interest and even submit a competing offer.

To do this, you should reach out to the estate agent managing the sale. They’ll be able to tell you whether the seller is open to considering new offers. Keep in mind that sellers are often reluctant to entertain new offers once they’ve accepted one, as they may not want to disrupt the ongoing process. However, some sellers might be open to a higher offer, particularly if the existing sale progresses slowly or the buyer seems uncertain.

If you decide to make an offer on a sold STC property, it’s essential to approach the situation with care and professionalism. Remember, the original buyer has already started the process, and any delays caused by a new offer could strain relationships between the parties involved.

Sold STC vs under offer: are they different?

You might also come across the term ‘under offer’ in property listings and wonder how it differs from sold STC. In truth, the two terms mean essentially the same thing. Both indicate that a seller has accepted an offer, but the sale is not yet legally binding.

The difference is often down to preference and regional terminology. Some estate agents prefer ‘under offer’ to highlight that negotiations are ongoing, while others use sold STC to show that the buyer and seller are working toward completion. Regardless of the term used, the key takeaway is that the property is not officially sold, and the deal could still fall through.

Can sold STC fall through?

Unfortunately, sales marked as sold STC can fall through. Research suggests that around one in three property sales in the UK fail to progress beyond the sold STC stage.

Why does this happen? There are several reasons:

  • Survey issues: Sometimes, a survey reveals problems with the property, such as structural issues, damp, or outdated wiring. These findings can make buyers rethink their decision.
  • Mortgage problems: If a buyer cannot secure the necessary financing, the sale can’t proceed. This often happens if the lender’s valuation doesn’t match the agreed sale price.
  • Chain delays: In a property chain, one failed sale can have a domino effect, impacting all the other transactions linked to it.
  • Change of mind: Occasionally, buyers or sellers simply change their minds. This could be due to personal reasons, a better offer, or a change in financial circumstances.

While these situations can be frustrating, they highlight the importance of preparation and communication throughout the process.

How long does sold STC take?

The time it takes for a property to go from sold STC to completion can vary widely. On average, it takes between six and 12 weeks, but this is just a guideline. The timeline depends on several factors, such as:

  • Mortgage approval: Finalising a mortgage can take time, especially if the lender requests additional documents or further checks.
  • Surveys and searches: The buyer’s solicitor will carry out legal searches to ensure the property is free from boundary disputes or local planning restrictions. This, combined with surveys, can add several weeks to the process.
  • Chain complexity: If the sale is part of a chain involving multiple buyers and sellers, delays are more likely as each link must align.

For buyers and sellers, patience is key during this stage. Staying proactive and responding quickly to requests from solicitors and estate agents can help speed things up.

Related: Navigating a house price after survey

What can buyers and sellers do to navigate sold STC?

Both buyers and sellers can take steps to make the sold STC process as smooth as possible.

For buyers:

  • Be organised: Have your documents ready, including proof of income, ID, and any paperwork your solicitor or mortgage provider might need.
  • Act quickly: If you’re asked for information or decisions, respond promptly to avoid unnecessary delays.
  • Be prepared for surveys: Keep in mind that surveys might uncover issues, and plan for how you’ll address them, whether it’s negotiating with the seller or budgeting for repairs.

For sellers:

  • Prepare your paperwork: Make sure documents like title deeds, warranties, and planning permissions are ready to go. This will speed up the legal process.
  • Communicate clearly: Stay in touch with your estate agent and solicitor to address any questions or concerns promptly.
  • Be flexible: Understand that delays can happen, and work with your buyer to find solutions if issues arise.

How often does sold STC fall through?

As mentioned earlier, approximately one in three sales marked as sold STC falls through. While this might sound discouraging, it’s a reminder of how complex property transactions can be. The key to reducing the risk of a sale falling through is clear communication, proper preparation, and choosing reliable professionals to support you.

Key points to remember about sold STC

To sum up:

  • What does sold STC mean? It means the seller has accepted an offer, but the sale isn’t legally binding yet.
  • Can you make an offer on a sold STC house? Yes, but be mindful of the ongoing process and relationships involved.
  • Can sold STC fall through? Yes, and it happens in about one in three cases.
  • How long does sold STC take? It typically takes between six and 12 weeks, depending on various factors.

If you’re buying or selling, remember to stay informed, proactive, and prepared for the unexpected. Why not start by jotting down a list of questions for your estate agent or solicitor? It’s a simple way to take control and keep things moving.

Thinking about selling your home? Contact your local Parker’s branch today.

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