What Does Sold STC Mean?
If you're searching for a new home, you've likely come across the term 'Sold STC', but what does it actually mean?
Sold STC (Sold Subject to Contract) means the seller has accepted an offer on the property, but the sale is not yet legally binding. The necessary legal checks, paperwork, and mortgage approvals must be completed before the transaction is final.
How Sold STC Fits into the House-Buying Process
When a property is marked as sold STC, the following steps typically occur:
- The buyer's offer is accepted by the seller.
- The property is usually taken off the market while legal checks and mortgage approvals take place.
- Both parties instruct solicitors to handle conveyancing and contracts.
- The sale progresses to exchange of contracts, making it legally binding.
- The final step is completion, when ownership officially transfers to the buyer.
How Does Sold STC Differ from a Completed Sale?
A sold STC property is not yet a done deal. Either party can still withdraw from the sale, and complications such as mortgage delays, legal issues, or survey problems could cause the deal to fall through. A completed sale, on the other hand, happens only after contracts are exchanged and signed, making it legally binding.
What Does Sold STC Mean for Sellers?
For sellers, having a property marked as sold STC is a positive step, but it doesn't mean the sale is guaranteed. Until contracts are exchanged, there's still a chance the deal could fall through. However, a good agent will keep in touch with all parties connected with the sale, the sellers, buyers, both sets of solicitors and other agents up and down the chain if applicable. Jones Robinson have dedicated sales progressors for all offices who are highly proactive to ensure the sale is kept on track so that fall-throughs are avoided. In fact, our fall through rate is only 1 in 8, compared to the national average of 1 in 3 sales.
Sellers looking to put their property on the market or understand its value can book a valuation with Jones Robinson.
What Happens After a Property Is Sold STC?
Once your home is sold subject to contract, you should:
- Instruct a solicitor to begin the conveyancing process. For in depth conveyancing advice consider consulting with Jones Robinson's conveyancing experts to help complete the process quickly and efficiently.
- Respond promptly to buyer enquiries and legal paperwork.
- Ensure the buyer's mortgage application is progressing smoothly.
Risks for Sellers
Common risks at this stage include:
- The buyer pulling out due to financial issues or a change of heart.
- A low mortgage valuation causing the lender to withdraw funding.
- Gazundering, when a buyer reduces their offer late in the process.
To avoid delays, sellers should ensure all necessary documents are ready, respond quickly to solicitor and estate agent communications, and push for a clear timeline for exchange and completion. Find out more about selling with Jones Robinson and see how our rigorous sales process helps minimise risks.
What Does Sold STC Mean for Buyers?
For buyers, seeing a property marked as sold STC means your offer has been accepted, but the sale is not yet legally binding.
Learn more about the buying process with Jones Robinson and make your move with confidence, or if you're a first-time buyer, check out our first-time buyer service.
What Should Buyers Do Next?
To keep the transaction on track, buyers should:
- Arrange their mortgage (if applicable) and secure a mortgage in principle.
- Conduct a property survey to check for structural issues.
- Work with their solicitor to review contracts and ensure all legal aspects are in order before exchange.
Can a Buyer Back Out?
Yes, buyers can withdraw before contracts are exchanged without legal penalties. However, any money spent on surveys, mortgage applications, or solicitor fees may be lost.
What If Another Buyer Makes a Higher Offer?
If another buyer submits a higher offer after a property is sold STC, the seller is legally allowed to accept it. This is known as gazumping. While legal in England and Wales, it is controversial and frustrating for buyers. Many sellers won't consider it, due to the risk of losing the original buyer if the second buyer then fails to proceed.
To reduce the risk of gazumping:
- Ask the seller to take the property off the market after accepting your offer.
- Move quickly with mortgage approvals and legal steps. Consider using our mortgage services for help with this stage.
- Consider a lock-in agreement to secure the deal early.
Can a Sold STC Property Still Fall Through?
Yes, a property marked as sold STC can still fall through before contracts are exchanged.
Common Reasons a Sale Collapses
- Buyer financing issues.
- Survey problems leading to renegotiations or withdrawal.
- Legal complications with property deeds or outstanding disputes.
- Gazumping or the seller changing their mind.
What's the Difference Between Sold STC and Under Offer?
What Does Under Offer Mean?
Under offer technically means a buyer has made an offer, and the seller is considering it. The sale is not yet confirmed, and the seller may still be open to higher offers. Most agents, however, advertise as Sold STC, not Under Offer.
How Is Sold STC Different?
Sold STC goes a step further. An offer has been accepted by the seller, and both parties are moving towards exchanging contracts. However, the sale is still not legally binding.
Which One Is More Secure?
Sold STC is generally more secure than Under Offer, as the seller has already agreed to a buyer's offer. However, both terms indicate that the sale is still in progress and not yet final.
Can You Still Make an Offer on a Property That's Sold STC?
Is It Legal to Make an Offer on a Sold STC Property?
Yes, legally, a property is still available for offers until contracts are exchanged. However, some sellers prefer not to entertain new offers once they have accepted one.
Tips for Buyers Interested in a Sold STC Property
If you're interested in a sold STC property, speak to us at Jones Robinson and register your interest in case the sale falls through. A reputable agent will keep a list of interested parties.
How Long Does It Take to Go from Sold STC to Completion?
The time it takes for a property to move from sold STC to completion typically ranges from 8 to 16 weeks, but this can vary depending on several factors.
Factors That Affect the Timeline
- Mortgage approvals – Delays in securing a mortgage can slow the process.
- Property surveys – Issues uncovered may lead to renegotiations or even cause the buyer to withdraw.
- Legal checks – The conveyancing process involves property searches and legal paperwork, which can take weeks.
- Chain dependency – If part of a property chain, delays elsewhere can impact the timeline.
Legal Implications of Sold STC
Is a Sold STC Agreement Legally Binding?
No, a property marked as sold STC is not legally sold. The sale only becomes binding once contracts are exchanged and the deposit is paid.
What Happens If a Buyer or Seller Pulls Out?
Either party can withdraw before exchange without financial penalties, but buyers may lose money spent on surveys and legal fees, while sellers may face delays in relisting the property.
How Do Contracts Work After a Sold STC Agreement?
Once contracts are exchanged:
- The buyer typically pays a deposit (5–10% of the purchase price).
- A completion date is set.
- If either party pulls out after this stage, they may face financial penalties.
FAQs
Can you still view a house that is Sold STC?
Estate agents may allow viewings, but some sellers prefer to stop them.
Is gazumping illegal?
No, it is legal in England and Wales but uncommon in Scotland.
Is Sold STC off the market?
Most estate agents will stop actively marketing the property, but the seller can still accept offers.
Jones Robinson is here to help. From identifying suitable properties to navigating licensing requirements, our expert team can guide you every step of the way.
Contact your local branch for expert advice if you're looking to sell or let your property:
Estate agents in Devizes: 01380 730200
Estate agents in Didcot: 01235 816222
Estate agents in Lambourn & Hungerford: 01488 73337
Estate agents in Marlborough: 01672 556640
Estate agents in Newbury: 01635 35010
Estate agents in Pewsey: 01672 556640