As the property buying and selling process can be a complex one, there are several terms that may be unfamiliar to those who haven`t navigated it before. One such term is “under offer” or “sold subject to contract”. These phrases are commonly used in the UK property market and can cause confusion for both buyers and sellers. In this article, we`ll explain what these terms mean and what you need to know about them.
What does “under offer” mean?
When a property is listed as “under offer”, it means that the seller has accepted an offer from a buyer, but the sale has not yet been completed. At this point, the property is still technically available for sale, but the seller is no longer actively marketing it. They are in the process of finalizing the sale with the buyer who made the accepted offer.
During this time, other interested parties can still view the property and potentially make an offer, but the seller is not obligated to consider these offers. The property will remain listed as “under offer” until the sale is completed, or until the buyer pulls out of the deal.
What does “sold subject to contract” mean?
“Sold subject to contract” means that the seller has accepted an offer from a buyer and the sale is in progress, but it has not yet been legally completed. The property is no longer available for sale, and the seller is not considering other offers.
At this point, the buyer will likely have paid a deposit, and a legally binding contract will have been drawn up outlining the terms of the sale. However, there are still conditions that need to be met before the sale can be finalized, such as the buyer securing finance or completing surveys and searches.
Once all the conditions have been met, the sale will be legally completed, and the property will be marked as “sold”.
What do these terms mean for buyers?
If you`re a prospective buyer and you come across a property listed as “under offer” or “sold subject to contract”, it means that there is already an offer on the table. If you`re interested in the property, you can still view it and potentially make an offer, but you should be aware that the seller is likely to prioritize the existing offer over any new ones.
If you do decide to make an offer, it`s important to keep in mind that the seller may still accept a better offer from another buyer, even if the property is marked as “under offer” or “sold subject to contract”. Until the sale is legally completed, the property is still technically available for sale.
What do these terms mean for sellers?
For sellers, “under offer” and “sold subject to contract” both mean that there is a potential sale in progress. However, it`s important to note that until the sale is legally completed, there is always the possibility that the deal could fall through.
If you`re a seller, you should also be aware that once your property is marked as “under offer” or “sold subject to contract”, it may be less attractive to other potential buyers. This is because buyers may assume that the property is already spoken for and not bother viewing it or making an offer.
In conclusion, “under offer” and “sold subject to contract” are both terms used in the UK property market to indicate that there is a potential sale in progress. As a buyer or seller, it`s important to understand what these terms mean so that you can navigate the property buying and selling process with confidence.