When is a property actually sold?

19th September 2023

Have you seen a property you like only for the board to say SSTC (sold subject to contract)? Did you know you may be still able to make an offer on that property?

There are so many grey areas and misleading terms that National Trading Standards Estate & Letting Agency (NTSELA) has updated its guidance to help buyers, sellers, landlords and tenants interpret how a property’s market status is described. The guide, which was updated in August 2023, makes it clear when a property may still be for sale and, conversely, actually sold. At Move Places, our properties for sale are labelled either SSTC or For Sale.

To ensure all home movers are clear regarding what the different descriptions mean, the NTSELA has defined the marketing terms buyers may see when they are looking for a property, and these are:

Under offer: A property where an offer has been received, which is under consideration by the vendor but the property is normally still on the market, i.e., further offers may be made dependent upon the vendor’s written instructions. This description should only be used until the offer is accepted or declined.
Sale agreed: A property where an offer has been accepted by the seller but, for example, contracts may not have been prepared or the buyer may not be in a final position to proceed. The property may or may not still be on the market, i.e., further offers may be made dependent upon the seller’s written instructions. The seller’s decision on future marketing is material information in this context and should be clearly stated on property listings to avoid any confusion amongst potential buyers. This description may be used until the property is sold or the sale falls through.
Sold Subject to Contract (SSTC): A property where an offer has been accepted by the seller, subject to contracts being exchanged. The seller should be asked by the agent to confirm whether the property should continue to be marketed for sale and this decision should be clearly stated on property listings, as above. This description may be used until the sales process is complete or the sale falls through.
Sold subject to conclusion of missives (in Scotland): A property where an offer has been accepted but the sale has not yet concluded, pending the exchange and agreement of the missives. The property should no longer be actively marketed for sale. In rare cases, the sale may still fall through, hence the use of this description.
Sold: A property where the sale has concluded, resulting in the buyer becoming the legal owner of the property. ‘Sold’ property listings should be removed in line with property portal requirements, relevant codes of practice and local planning laws.

When it comes to lettings

The guidance from NTSELA also clarifies the situation for those looking for a rental property:

Under offer: A property where an offer has been received, which is under consideration by the landlord, but the property is normally still on the market, i.e., further offers may be made dependent upon the landlord’s written instructions. This description should only be used until the offer is accepted or declined.
Let agreed: A property where a landlord has, in principle, agreed to enter into a rental agreement with a prospective renter, subject to further checks and referencing. The use of this term is not subject to a relevant person having received a holding deposit from the prospective renter.
Let: A property where a landlord and renter have entered into a binding rental agreement.

Marketing terms

There is also further guidance on how properties are described during the marketing phase, as below:

New on the market: A property that has not been advertised since the last sale or let of that property. This description should only be used for short period of time
New instruction: A property where an agent has recently been instructed to market (and which may have been offered for sale by another agent without being sold or let); the description should only be used for a short period of time.
New and exclusive: A property that is either a new instruction or new on the market which is exclusive to that agent or portal (depending on the context). The description ‘new’ should only be used for a short period of time, although the term ‘exclusive’ can be used for as long as it is applicable.
New method of sale/let: A property that is now being advertised for sale or let using an alternative mechanism to the original advert (e.g., changing to an auction or sealed bid for a property sale). This description should only be used for a short period of time.
Reduced: A property that has been recently reduced in price. Any reduction should be a genuine reduction against the previous price.

The significance of the definitions for buyers

Previously, some buyers or prospective tenants might have avoided making offers on properties as they would assume, from the agent’s description, that the property was already sold or let. The new guidance clarifies this, providing consistency across different agents. As a result, it may prompt buyers or tenants to be bolder in regards to the timing of any offers.

It is important to remember that the seller or landlord retains control over when the cut off is for offers. They may want to reject offers if a buyer has asked them to take the property off the market if they pay full price, for example.

Beware of gazumping

If another buyer or tenant makes a higher offer for a property after a seller has accepted an offer from someone else, it’s called gazumping. This usually happens in a competitive property market where there isn’t much stock to choose from, and/or when the purchaser is under pressure to find somewhere to buy.

Get advice on making an offer

If a property has caught your eye and you’re not sure if it’s too late to make an offer, contact Move Places for advice and clarification.