When buying or selling a property in the UK, you might notice that mention is often made of something called “subject to contract” (often abbreviated as SSTC). In simple terms, it means:

Nothing is legally binding yet.

Contracts must be exchanged before a buyer or seller is legally committed even after an accepted offer has been made. For Estate Agents Hucclecote, visit //www.thomasandthomasproperty.co.uk/estate-agency-hucclecote/

So what goes on while it’s “subject to contract”?

Legal and Practical Checks – This is the point where background checks are conducted; these involve:

Buyer securing mortgage (if applicable)

The buyer’s survey

Dealing with search results and enquiries from solicitors

Agreeing fixtures and fittings

If there is a chain, resolve it and finalise.

Even once your estate agent has put the property as Sold STC, it is not always set in stone!

Price – Can previous rate be changed now?

Yes. As it is not legally binding, buyers may attempt to re-negotiate after the survey has been conducted (i.e. if repairs are required). They may also accept another offer, hence the terms gazumping.

At what point is it enforceable?

Exchange of contracts makes the sale legally binding. Once at exchange, both sides are in and the downside of pulling out is usually punitive financially.

How to reduce risk while STC

Choose a proceedable buyer (MiP, proof of funds)

Respond quickly to solicitor enquiries

Book surveys early

Maintain clear communication through the chain.

If you are uncertain of where things stand, your estate agent and solicitor should be able to detail what happens next as well as the loose ends still needing tied up.