APR. BMV. BOE. CML. DIP. EPC. FMV. NALS. OTO. PP. ROI. ROR….
When you are buying or selling a home, you may feel like you’re eating a bowl of alphabet soup. So many acronyms! Industry professionals tend to throw out these terms casually, with little to no realisation that most of us are lost at sea. Consider this your lifeboat. We are here to provide unbiased, impartial information and education for those who are buying, selling or buying and selling. So, to this end, what does SSTC mean?
You may have been wondering, perhaps intimidated or hesitant to ask. Wonder no longer.
What Does SSTC Mean? And What Does It Mean to You?
SSTC: Sold Subject to Contract
SSTC means that the buyers and sellers who are engaged in a contract are typically still negotiating. An offer has been accepted, but the process has not been finalised. Therefore, some issues may still be up for debate and change. In other words, sold subject to contract means that there has been some preliminary verbal agreement related to the offer. Now, they need the final contract to be sorted and signed.
At this stage of the game, no money has changed hands, the agreement is not yet legally binding and the price can still change. So, in other words, SSTC means ‘We’re getting closer… but we’re not there yet.’
When talking to estate agents or other industry professionals, you might hear SSTC also referred to as ‘sale agreed’ or ‘under offer.’ These terms have essentially the same meaning. If, though, you are unclear at any point in the process, ask for guidance and explanations, whether from your estate agent, solicitor, conveyancer or through helpful resources like this.
What does SSTC mean for those who are buying a property? It means that they are fully realising just how lengthy the sales process can be and just how much waiting they have to do. But when in the SSTC stage, the offer has been accepted. Buyers should instruct surveys and searches to ensure there are no issues with the property. They can use these results to renegotiate – or they can back out altogether at this point. Buyers typically want their estate agents to work to mark the property as SSTC now so other prospective buyers don’t swoop in and usurp them.
For sellers, SSTC means that the buyer’s financing is solid and they have confirmed proof of funds. At this point, the seller should request that their agent mark the property listing as SSTC. This essentially serves to take the property off the market; the listing is still active but it is far less visible. Now is when you instruct your solicitor to start the conveyancing process and organise the transfer of ownership.
How Long Now?
When people reach the SSTC stage, they think, ‘Just about done! Let’s start celebrating!’ Before you pop the bubbly, though, be aware that things can (and do) change at this stage. Remember, the agreement is not legally binding until the contract is signed. Yes, it’s ‘sold’ – but not quite yet.
According to a Property Academy Homemovers Survey, 90% of sellers expect that they will complete their transaction within three months of being categorised as SSTC. But just 55% meet this timeline. Typically, going from SSTC to completion takes 120 days, or four months. Over a month of this is spent arranging for searches – and then waiting for results – and sorting enquiries between the buyer and various vendors – and then some more waiting.
So while we shouldn’t pop the champagne quite yet, now is a good time to work on packing, arranging removals and otherwise getting ready for the next phases of life.
Can You Avoid the Wait?
Now that we know what SSTC means, is there a way to streamline the process? If all goes to plan and everyone is in agreement about everything… you won’t have to wait too long. But in the real world, there are obstacles all along the way. To avoid the stresses and hassle of SSTC status, you can work with a reputable cash house buyer. They have the funds required to complete a purchase within days, and you do not have to worry about negotiating, renegotiating, lack of financing or deals falling through. You are guaranteed a sale (typically between 80 and 85% of total market value, without the expense of estate agents, solicitors, surveys, searches, repairs and improvements).
Now that we’ve decoded what SSTC means, you have more information with which to make decisions that are right for you.
