What does Sold Subject to Contract (Sold STC) mean?

You might have spotted the term Sold STC (Subject to Contract) on property listings while you’ve been searching on Rightmove. But what exactly does Sold STC it mean?

In simple terms, Sold STC means the seller has accepted an offer from a prospective buyer for the proeprty. But the sale isn’t yet legally binding, as the conveyancing process hasn’t yet been completed.

When a property is marked as Sold STC (or SSTC), it’s usually no longer advertised to other potential buyers and has effectively been taken off the market. It signals that the seller plans to complete the sale with the buyer that made the offer. So, while the property is marked ‘sold’, the change of ownership won’t take place until the conveyancing process has been completed.

What happens after a property is marked Sold STC?

There are several steps to complete between the property being marked as Sold STC and the exchange of contracts.

For the buyer, this phase triggers the start of the conveyancing process. The amount of time this takes can vary. Often, it depends on how quickly the solicitors and estate agents can handle the process. But at the moment, this process is taking around five months.

What’s the difference between under offer and sold STC?

Under offer and Sold STC are both terms regularly used by estate agents to describe buyer/seller negotiations, but there are some important differences. Notably, they refer to slightly different phases in the property sales process.

• Under offer: A prospective buyer has made an offer on a property which the seller has accepted, but the terms of the deal are still being finalised
• Sold STC: The conveyancing process is underway and both parties are working towards completion, but the sale doesn’t become legally binding until the exchange of contracts takes place.

In this sense, under offer is one step behind Sold STC in the property sales process, as the below overview shows:

1. Listing the property: The property is given a list price and advertised for sale
2. Under offer: An offer has been accepted by the vendor, but the conveyancing process is yet to start
3. Sold STC: Once the seller informally accepts an agreeable offer, the property is marked as Sold STC, with checks, surveys and legal preparations for the sale then being made.
4. Exchange of contracts: If the buyer and seller are both happy to proceed, they will sign the final contracts which are then exchanged. It is at this point that the sale becomes legally binding.
5. Completion: The sale is finalised, often days after the exchange of contracts (though sometimes on the same day), with the remaining balance being paid and the keys being handed over.

How long does it take for a property to go from under offer to sold? It can vary massively, but at the moment, it takes around 60 days on average for a home to sell in Great Britain, from the time it’s listed on Rightmove.

Can I still view a property that is Sold STC?

For buyers

Buyers generally prefer that a property is marked as Sold STC as soon as possible to deter other potential buyers from making an offer. While this change typically indicates that the property is no longer being actively advertised, there is nothing stopping another buyer from contacting the estate agent and making a higher offer. This practice is known as gazumping – when someone offers more for a property that’s already under offer, and the seller accepts it.

Gazumping can obviously be frustrating for buyers who have had an offer accepted, and it’s actually illegal to gazump in Wales and Scotland. To minimise the risk of this happening, several steps can be taken:

• Keep on top of any paperwork you receive from your conveyancer, to make sure things move as quickly and smoothly as possibly
• Ask the seller to remove the property from the market so other prospective buyers aren’t able to make offers

For sellers

From a seller’s perspective, marking a property as Sold STC demonstrates good faith and signals commitment to the current buyer.

That said, if a higher offer from an alternative buyer comes in, estate agents are required by law to present these to sellers, bound by their duty to act in the best interest of the seller.

While it might be tempting to accept a higher offer, it’s worth considering the potential downsides:

• Gazumping can irreparably damage relationships with your existing buyer, and there’s no guarantee that the new offer will make it through to completion
• Any delays may upset other parties if you’re in a property chain, as starting the process again will inevitably cause delays
• While it’s legally possible in England, some see gazumping as an unfair and underhand practice.

Why might a Sold STC property come back on the market?

A property marked as Sold STC may come back onto the market for several reasons:

• The seller may decide to withdraw the property
• A property survey might uncover issues, prompting the buyer to withdraw
• A break elsewhere in the property chain may halt the process

Again, the sale isn’t legally binding until the exchange of contracts takes place, leaving room for delays to arise, problems to be uncovered, or changes of heart.

To reduce the risk that a property sale falls through, buyers and sellers can:

• Be transparent about their situation
• If you’re a seller, be upfront about any issues with the property. They’re likely to be found during the survey, which may prompt the buyer to withdraw further down the line
• Make sure to choose the right estate agents who’re experts in the local area, and take recommendations from friends and family for effective conveyancers and surveyors