Sold STC – What does it mean?
As an acronym, SSTC merely means ‘Sold Subject To Contract’. That sounds nice and simple, doesn’t it? Unfortunately, it’s a little bit trickier than that due to legal technicalities and what it actually means to the different parties involved. Considering an average of 15% of properties come back onto the market after being listed as ‘Sold STC’, it’s worth understanding exactly what STC means for different parties involved. As experienced estate agents in Cardiff, we’re more than familiar with the jargon used in the industry, so we’ve compiled this guide on what Sold STC really means for both buyers and sellers.
What does it mean?
As soon as a property is SSTC, all the necessary work begins to officially transfer the ownership of the property into the buyer’s name. This is a lengthy legal process that we’ve previously broken down into a more in depth 12-step article. Put simply, this is the stage that the buyer will make mortgage arrangements, conduct searches on the property, authorise a survey, negotiate contracts and finalise all the details before the sale becomes concrete. As you can imagine, the intricate nature of this process means that buyers will occasionally find red flags in the property which can lead to them backing out or trying to negotiate a lower price. Although it sounds risky, the lack of legal commitment at the Sold STC stage can provide benefits for both the buyer and the seller.
What does it mean for sellers?
Listing a property as Sold STC means that the seller has the right to accept a better offer if approached by another interested buyer. It also helps the seller to look for other buyers if the original buyer starts to run into problems. Prospective buyers can phone the estate agent and ask them to put their details on record if the property comes back on the market, this puts the seller in a much better position should something go wrong with the original sale.
What does it mean for potential buyers?
Sold STC gives buyers the option to leave the deal with minimal financial loss if any problems arise with the sale. For example, sometimes a surveyor may find issues with the structure of the property, if this happens then the buyer has the freedom to withdraw from the deal or renegotiate on the original offer.
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