When browsing for properties online, you may have come across terminology such as «under offer» and «sold subject to contract.» While these terms may seem similar, they actually indicate different stages in the home-buying process.
Under Offer
When a property is marked as «under offer,» it means that the seller has accepted an offer from a buyer, but contracts have not yet been exchanged. This means that the sale is not yet legally binding, and either party can still pull out of the transaction.
Typically, when a property is under offer, the seller will not usually entertain any further offers from other potential buyers. However, if the sale falls through, the property will become available again.
Sold Subject to Contract
On the other hand, when a property is marked as «sold subject to contract,» it means that contracts have been exchanged between the buyer and seller. This makes the sale legally binding, and both parties are committed to completing the transaction.
While a sale agreed in principle when a property is under offer, it is much more certain when a property is sold subject to contract. Once contracts have been exchanged, the buyer will usually pay a deposit, and a completion date will be set.
When searching for a property, it is important to understand these terms to avoid confusion. If you are a seller, it is important to be aware of the difference between the two, so you can manage your expectations and understand the likelihood of the sale going through.
In conclusion, «under offer» means that the seller has accepted an offer, but contracts have not yet been exchanged. Whereas, «sold subject to contract» means that contracts have been exchanged, and the sale is legally binding.