When it comes to buying or selling a property, there are certain terms that are commonly used and can be confusing to those who are not familiar with the real estate industry. Two terms that often cause confusion are “sold subject to contract” and “under offer”. While these terms may seem interchangeable, they actually have different meanings.

Sold Subject to Contract

When a property is listed as “sold subject to contract”, it means that an offer has been accepted by the seller, but the sale is not yet complete. The property is still technically on the market, and other buyers can still make offers. However, the accepted offer is considered legally binding, and the sale will go ahead as long as certain conditions are met, such as the buyer obtaining a mortgage, the property passing a home inspection, or the completion of necessary paperwork.

Under Offer

When a property is listed as “under offer”, it means that an offer has been made by a buyer, but it has not yet been accepted by the seller. The property is effectively taken off the market while the seller considers the offer. During this time, other buyers cannot make offers on the property, but they can register their interest with the estate agent in case the sale falls through.

Key Differences

The main difference between “sold subject to contract” and “under offer” is that the former is a legally binding agreement, while the latter is not. Once a property is sold subject to contract, the sale will go ahead unless certain conditions are not met. In contrast, a property that is under offer can still be sold to another buyer if the seller decides to accept a better offer.

Another difference is that a property that is sold subject to contract is often marked as “sold” on property portals, while a property that is under offer is not. This can be confusing for buyers who may see a property they are interested in, only to find out that it is already sold subject to contract.

Conclusion

In summary, while “sold subject to contract” and “under offer” may sound similar, they have different meanings in the real estate industry. Sold subject to contract means that an offer has been accepted by the seller and the sale is legally binding, while under offer means that an offer has been made but it has not yet been accepted. It is important for buyers and sellers to understand these terms to avoid confusion during the buying and selling process.