When it comes to buying or selling property in the UK, you may come across the term “sale agreed sold subject to contract.” This phrase can be confusing to those who are unfamiliar with the legal jargon used in the property market. In this article, we will explain what “sale agreed sold subject to contract” means and how it affects the buying and selling process.

What does “sale agreed sold subject to contract” mean?

In simple terms, “sale agreed sold subject to contract” means that the seller has accepted an offer from a buyer, but the sale is not yet legally binding. The property is effectively still on the market until both parties have agreed and signed a contract. This means that either party can still back out of the deal until contracts are exchanged.

What happens after “sale agreed sold subject to contract”?

Once both the buyer and seller have agreed to the terms of the contract, they will sign it, and the sale becomes legally binding. This is known as “exchanging contracts.” Until this point, either party can pull out of the sale, even after the offer has been accepted.

What to do when you see “sale agreed sold subject to contract”?

If you are a buyer, it is important to understand that even if you have made an offer that has been accepted, the property is still technically on the market until contracts are exchanged. You should not assume that the property is yours until the contracts have been signed. It is advisable to continue looking at other properties that are available until the sale is finalized.

For sellers, it is important to note that “sale agreed sold subject to contract” does not guarantee that the sale will go through. Buyers can still withdraw their offer at any time, and it is not binding until contracts are exchanged. It is also important to continue marketing the property until contracts are exchanged, as this can help attract backup offers in case the first offer falls through.

Conclusion

In conclusion, “sale agreed sold subject to contract” is a legal term commonly used in the UK property market. It indicates that the seller has accepted an offer from a buyer, but the sale is not yet legally binding. Both parties must sign a contract before the sale becomes legally binding. As a buyer or seller, it is important to understand the term and what it means for the sale process. By understanding the term, you can avoid confusion and ensure a smooth sale.