When it comes to the process of buying and selling properties, there are various terms that can be confusing for both parties involved. Two of the most commonly used terms – “sale agreed” and “sold subject to contract” – often create confusion for buyers and sellers alike. In this article, we`ll explore the difference between these two terms and what they mean for buyers and sellers.
Sale Agreed
When a property is marked as “sale agreed,” it means that the buyer and seller have come to an agreement on the price and terms of the sale. However, the sale is not yet final, as there are still some legal and administrative steps that need to be taken before the sale can be completed. Essentially, the seller has agreed to sell the property to the buyer, but the buyer has not yet legally acquired the property.
Sold Subject to Contract
On the other hand, “sold subject to contract” means that the property has been sold, but the sale is still subject to certain conditions being met. These conditions typically include legal and administrative requirements, such as the completion of surveys and searches, confirmation of funding, and the resolution of any outstanding issues related to the property. Until these conditions are met, the sale is not legally binding.
The main difference between “sale agreed” and “sold subject to contract” is that the former refers to an agreement between the buyer and seller, while the latter refers to a legally binding sale subject to certain conditions being met.
What Does This Mean for Buyers and Sellers?
For sellers, marking a property as “sale agreed” means that they have found a buyer who is willing to purchase the property at the agreed-upon price. However, there is still some uncertainty, as the sale is not yet final. Until the sale is completed, the seller may continue to receive offers from other potential buyers.
For buyers, a property that is marked as “sold subject to contract” means that the property has been sold, but there are still conditions that need to be met before the sale is legally binding. It`s important for buyers to ensure that these conditions are met before proceeding with the purchase, as failing to do so could result in legal and financial complications.
In conclusion, while “sale agreed” and “sold subject to contract” may seem similar, they actually refer to different stages in the buying and selling process. Sellers should be aware that marking a property as “sale agreed” does not guarantee a final sale, while buyers should ensure that all conditions have been met before proceeding with a purchase marked as “sold subject to contract.” Understanding these terms is essential for a smooth and successful property transaction.