What Does SSTC Mean? Sold Subject To Contract Explained

You have probably seen the label ‘SSTC’ or Sold Subject to Contract’ on property listings, but what does it mean? Can the offer still fall through, and can you still view properties or make offers on SSTC houses? Join me as I explore the meaning of SSTC and everything you need to know about SSTC properties.

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What Does Sold Subject to Contract Mean?

Sold Subject to Contract, or SSTC, means that someone has made an offer to buy a property and it has been accepted by the seller, but their agreement is not yet legally binding. No contract has been exchanged, hence ‘subject to contract’. The property listing will still be online and viewable to others, as the sale may fall through and the property is available once again.

What’s the Difference Between SSTC and Under Offer?

SSTC and ‘Sale Agreed’ mean the same thing – the seller of the property has accepted an offer, but contracts have yet to be exchanged. ‘Under Offer’ is very similar, the only difference is that whole offers are being made to the seller, and they may not have accepted one just yet.

What Does SSTC Mean For Sellers?

For a seller, SSTC means they have received an offer from a buyer and accepted it. If the offer is withdrawn by the buyer, then the seller will need to remove the SSTC label on their listing and put the property back on the market. This is not uncommon and is why many listings are still live even though an offer has been accepted.

Sellers will need to provide the buyer with documents, forms and other paperwork to facilitate the sale of their property and work out the contract with their solicitors. Both the buyer and seller must work out the length of time between the exchange of contracts and completion of the sale, plus other matters, like any fixtures and fittings that will be included with the property.

What Does SSTC Mean For Buyers?

Once a buyer’s offer on a property has been accepted, they will need to do some more work before they can actually buy the property. They will likely need to secure their mortgage with the lender which may involve getting a survey done on the property. If the survey reveals the property needs extensive work, or it is worth a lot less than the asking price, the lender may not agree to lend the money for that particular property. The buyer may also pull out at this stage if the survey reveals something about the property that they were not aware of.

Buyers should at this point notify their solicitor to begin the conveyancing process which involves examining the draft contract from the seller, any supporting documents, and raising any potential issues with the seller’s solicitor. The buyer is also vulnerable to gazumping at this point where the seller accepts a higher offer on the property, leaving the original buyer back at square one with no property.

Can You View a House that is SSTC?

You can certainly request a viewing of a property that is SSTC, although the estate agent or seller may refuse as it could be a waste of their and your time. However, if they are expecting the original offer to fall through, or are trying to seek a higher offer on the property, they might say yes. Prepare for disappointment though, as an SSTC property may get sold before you can make your own offer.

Can I Make an Offer on an SSTC Property?

You can submit an offer to the buyer for an SSTC property, but it would need to be higher than the current offer for them to consider it. No one wants to pull out of a sale for the sake of a small amount of money. This would also be considered gazumping on the part of the seller and while legal, this is frowned upon. It could be possible that the current offer could fall through, however, so it doesn’t hurt to at least register your interest if you are especially motivated to buy that particular property.

What SSTC Means for Landlords and Investors

If you are the seller and your property is SSTC, then happy days – with luck, the sale will go through without a hitch. Beware of gazundering – this is when a buyer lowers their offer at the last minute to pressure you into accepting it as the sale could already be underway. This is a little underhanded much like gazumping, and I would encourage you to stand firm and refuse any attempts at gazundering. You can reduce the risk of the sale falling through or potential gazundering by being realistic about your asking price and making sure all paperwork, deeds, safety certificates and other essentials are in order.

If you have made an offer on a property that is accepted and the listing changes to SSTC, you can feel confident that the sale will go ahead subject to you securing a mortgage if required and the results of the survey. Your solicitor will conduct some checks on the seller, making sure that the property is theirs to sell and that there aren’t any potential issues with planning and property boundaries that could affect the sale. It can take some time for a sale to complete fully, so make sure you have everything in order and don’t be afraid to follow up with your solicitor regularly.

If another buyer makes an offer and the seller is considering it, you could try to persuade the seller to stick with your offer if you reassure them of your trustworthiness and readiness to complete – they may choose to stick with the sale already in progress rather than give it up for a potentially unknown buyer. Some buyers take out home buyers protection insurance, which can cover any losses made if you do get gazumped. You can also request that the property gets taken off the market as a condition of your offer, and depending on the seller, they may accept but are not legally obligated to do so. Making a strong initial offer, maintaining good communication with your solicitor, mortgage lender and surveyor, securing finance early on, and making sure you have all the paperwork in order can reduce your risk of getting gazumped on an SSTC property.

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