Sold subject to contract

Sold subject to contract (SSTC) means the seller has accepted an offer, but the sale is not legally binding until contracts are exchanged.

Sold subject to contract, often shortened to SSTC or STC, means the seller has accepted an offer on the home. The agent marks the listing to show that a buyer has been found.

"Subject to contract" is the key part. In England and Wales an accepted offer is not legally binding. Either side can still pull out, or ask to change the price, until contracts are exchanged.

What happens after the offer is accepted

Once an offer is accepted, the agent usually sends a memorandum of sale to both sides and to their conveyancers. It sets out the price, the address and who is acting for each party. Conveyancing then begins: the draft contract, searches, enquiries and the buyer's mortgage and survey.

This stage often takes several months. The home stays marked as sold subject to contract until exchange of contracts, when it becomes a firm sale.

Why sales can still fall through

Because nothing is binding yet, a sale can fall through at this stage. Common reasons are a problem found by the survey, a low mortgage valuation, a buyer or seller changing their mind, or a break somewhere in the property chain.

A seller can also accept a higher offer from someone else before exchange. This is called gazumping. Estate agents must pass every offer they receive to the seller until contracts are exchanged, unless the seller has told them otherwise.