Liam Gretton

What Does SSTC Really Mean?

Contract for a home

Whether it’s buying your first property or it’s one of your many, there are many terms in the ‘property handbook’ that you probably look at and say to yourself, “What does that even mean?”

And most likely, one of those terms you’ve come across is SSTC, which, as an abbreviation, makes many wonder what it is and how it can affect me. So, that’s why, in today’s blog, we’re going to tell you exactly what it stands for, what it means for you in the home buying and selling process, and everything you need to know about it as a whole.

 

What Does SSTC Stand for?

In short, SSTC stands for ‘Sold Subject to Contract’ which is commonly used by Estate Agents in the event of buying or selling a property.

 

What Does SSTC Mean?

As for what SSTC (Sold Subject to Contract) actually means, this essentially is where the seller of the home has agreed to sell the property at a specific price, but the agreement isn’t in the legal stages yet. Basically, it may have been agreed verbally or in writing and you may be in the conveyancing process, but there’s no exchange of contracts as of yet.

Essentially, at this stage, if you’re the landlord, you’re seller can pull out, and if you’re a buyer, your ‘potential landlord’ can also pull out without any legal repercussions. So, in turn, everything relies on the exchange of contracts before it’s legally confirmed that you’ve bought or sold a home.

 

How Does SSTC Affect Buyers and Sellers?

In both cases, SSTC can affect you massively when you’re in this stage of the buying or selling process. Let’s run over quickly how it can affect both parties:

 

As a Buyer

If you’re looking to buy the property in question and make an offer, SSTC can mean that the seller has accepted, but you will then need to start the conveyancing process with your solicitors. Not only that, but you’ll have to:

  • Carry out surveys
  • Valuation has been fully completed by your lender
  • The EPC (Energy Performance Certificate) has been checked and confirmed
  • Have your funding in place for the deposit
  • Building insurance is in place
  • A completion date is agreed upon
  • Etc.

 

As you can see, there are many stages you will need to go through with your solicitor, estate agent, lender, etc., before the exchange of contracts is on the cards.

 

As a Seller

If you’re the landlord selling the home, SSTC means that you’ve agreed to sell the property to the chosen offer of your choice. Now, all you have to do is hope that the buyer passes all the tests and genuinely wants the home.

If the buyer is fully ready to move home and their funds have been approved (the deposit for the mortgage), a ‘Sold STC’ sign will be placed outside your property, rather than the ‘For Sale’ sign that was there beforehand.

 

How Can Buyers Prevent Being Gazumped by the Seller?

If you’ve ever been in the spot of a buyer where you’ve had your offer accepted, but then someone swoops in, makes a higher offer, and then you get fobbed off, it can feel pretty terrible, especially if you’re wanting to move in as soon as possible. So, how and can you prevent this from happening?

To prevent being gazumped, you should consider:

  • Homebuyers protection insurance when you get the offer accepted
  • Act quickly by having everything in place for the sale to go through
  • You could ask for the property to be taken off the market (they won’t always do this)
  • Just show that you’re committed to buying the property as quickly as possible

 

If you have all of or only a couple of these in place, you’ll be a much more likely candidate to make the house that you want yours. Sellers like buyers who act fast and show their utmost desire for the property. Additionally, you can have a couple of elements in place to cover your own back as well.

 

SSTC FAQs

If the seller agrees for another potential buyer to view the home, then yes, anyone can view a SSTC home. However, as the buyer, you should cover your backs with homebuyers protection insurance if the seller were to accept another offer.

Yes, if you’re a seller, you can change your mind on what offer you accept, which is unfortunate for the first buyer that is accepted. The only time a seller can’t change their minds is when the contracts have been exchanged.

There are a few ways a property sold STC can fall through, including:

  • There may be an issue with the house when the survey is taken
  • The chain collapses
  • The buyers or seller changes their mind
  • The buyer doesn’t have the funds for the deposit on the mortgage
  • It could be a very slow process and one party gets fed up
  • There may be legal issues

 

There are many ways a property sold STC can fall through but rest assured there are ways on both sides that you can do to prevent it as much as possible from happening.

In short, yes, someone else can make an offer on a home that is SSTC. Whether or not it gets accepted is up to the seller of the home and how the current buyer protects themselves. However, there is nothing they can do, as the estate agent is legally obligated to pass on any offers to the seller.

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