Sold Subject To Contract (SSTC)
Sold Subject to Contract (SSTC) is a term used in the property market to indicate that an offer on a property has been accepted by the seller, but the legal process to transfer ownership has not yet been completed. This stage is crucial as it signifies a mutual agreement to proceed, although the sale is not legally binding until contracts are exchanged.
What is Sold Subject to Contract?
In the UK property market, the phrase "Sold Subject to Contract" marks a significant point in the sale process where both buyer and seller have agreed on a price, but the transaction is still pending the completion of various legal and procedural steps. These steps include conducting property surveys, securing mortgage offers, and completing the necessary legal work to transfer ownership. During this period, the property is effectively off the market, although the sale remains non-binding and either party can still withdraw without legal consequences until the exchange of contracts.
The SSTC stage is critical for both buyers and sellers as it initiates the formal process of changing property ownership. However, it also introduces a phase of uncertainty, commonly referred to as being "in limbo," where numerous factors can affect the progression to completion. For instance, issues identified during the property survey or challenges in securing financing can lead to renegotiations or, in some cases, the collapse of the sale.
Understanding the implications of SSTC is essential for navigating the property market effectively, providing a framework for buyers and sellers to prepare for the next steps towards finalizing the sale and highlighting the importance of timely and efficient completion of all required checks and procedures.
Frequently Asked Questions
Sold Subject To Contract (SSTC) is a term that you may have heard before, but you might not be sure what it means. Here are some common questions and answers to help you understand what it means.
