Subject to contract
Subject to contract means a property sale has been agreed but neither party is legally bound until contracts are exchanged. Until that point either side can withdraw or change the terms, because a contract for the sale of land is only binding once it is in signed writing under section 2 of the Law of Property (Miscellaneous Provisions) Act 1989. It is the phrase that listings marked sold STC, short for sold subject to contract, refer to.
What sold STC means
Sold STC means the seller has accepted an offer and the property has moved into the conveyancing process, but the sale is not yet legally binding. In practice the property usually comes off the open market and active marketing stops, yet in law nothing is fixed until contracts exchange. For the buyer, this is the point at which the real work begins: instructing a solicitor, arranging the mortgage, and commissioning a survey and searches.
When the sale becomes legally binding
The sale becomes binding at exchange of contracts, when both solicitors swap signed contracts and the buyer pays a deposit. Completion follows, often a week or two later and sometimes the same day, when the balance is paid and the keys change hands. The stretch between an offer being accepted and completion commonly runs to six to twelve weeks, though a chain, a slow search, or a mortgage delay can extend it well beyond that.
Sold STC versus under offer
Sold STC and under offer are often used loosely, but they mark different points. Under offer usually means an offer has been made and is still under consideration, or has only just been accepted. Sold STC means the offer has been accepted and the parties are progressing the conveyancing. Sold STC is therefore a step further along the journey than under offer, though neither status is legally binding.
Can a subject to contract sale fall through or be gazumped?
Yes. Until contracts exchange, either party can withdraw without penalty, and the sale can collapse over a poor survey, a down-valuation, a problem found in the searches, a chain breaking, or a simple change of heart. A seller can also accept a higher offer from another buyer, known as gazumping, which is lawful in England and Wales because the original agreement is not binding. Estate agents are required to pass on any offer they receive, so a sold STC status is a statement of intent rather than a guarantee. From working with landlords who buy and sell rental property, the practical exposure in this window is the money spent on surveys and legal work before a deal that can still fall away, which is the case for reaching exchange as quickly as the chain allows.
Subject to contract in Scotland
Scotland reaches the binding point differently. There is no exchange of contracts; instead a sale becomes binding at the conclusion of missives, the formal letters exchanged between the parties' solicitors, and until then a deal is described as subject to conclusion of missives. Because missives conclude earlier than an English exchange, the binding moment comes sooner, which is the main reason gazumping is far less common north of the border. This position is correct as of June 2026.
Frequently asked questions
Is subject to contract legally binding?
No. Subject to contract signals that a sale has been agreed in principle but is not binding on either party. In England and Wales the binding point is exchange of contracts; in Scotland it is the conclusion of missives.
What is the difference between sold STC and under offer?
Under offer generally means an offer is on the table or only just accepted, while sold STC means the offer has been accepted and conveyancing is under way. Sold STC sits one step further along, but neither is legally binding.
How long does sold subject to contract take?
It varies, but six to twelve weeks from accepted offer to completion is typical. Surveys, searches, mortgage approval and the length of any chain are the usual factors that lengthen it.
