Under offer vs sold STC

Under offer vs Sold STC – What It Really Means in Scotland

If you’ve been browsing property portals like Rightmove, Zoopla, or ESPC, you’ve likely seen these two labels plastered across the corner of property photos: "Under Offer" and "Sold STC" (Sold Subject to Contract).

For a homeowner in Scotland looking to sell, or a buyer trying to navigate the competitive markets of Edinburgh, Glasgow, or Aberdeen, these terms can feel like confusing legal shorthand. Does "Under Offer" mean the house is gone? If a property is "Sold STC", can you still view it or make an offer?

In the Scottish property market, the legal landscape is distinct from the rest of the UK. We operate under a unique system of missives and conveyancing that changes what these labels actually mean for your pocket and your peace of mind. This guide will break down the differences, the timelines, and exactly what happens behind the scenes as a Scottish home moves from "For Sale" to keys being handed over.

Defining the Terms: What Do They Actually Mean?

At their core, both "Under Offer" and "Sold STC" (Sold Subject to Contract) signify the same thing: the seller has accepted an offer from a buyer, but the legal paperwork hasn't been finalised. However, the context changes depending on where you are and which website you are using.

What is "Under Offer"?

In Scotland, "Under Offer" is the traditional term used when a seller has formally accepted a written offer from a buyer’s solicitor. At this stage, the property is usually taken off the market, and the "For Sale" board gets a shiny new sticker.

Crucially, "Under Offer" means the property is in the "Subject to Missives" stage. The solicitors are currently exchanging formal letters (missives) to agree on the final terms of the sale.

Many sellers compare estate agents vs cash buyers when deciding which route offers the most security during the offer stage.

What is "Sold Subject to Contract" (STC)?

"Sold STC" is the standard terminology used in England, Wales, and Northern Ireland. Because major property portals like Rightmove are UK-wide, they often use "Sold STC" as a catch-all term.

In a Scottish context, if you see "Sold STC," it almost always means the same thing as "Under Offer." It indicates that an offer has been accepted "subject to survey" (though the Home Report usually covers this) or "subject to missives."

The Scottish Nuance: "Subject to Missives"

In Scotland, we don't really use the phrase "Subject to Contract" in a legal sense. Instead, we talk about the "Conclusion of Missives."

• Under Offer: The offer is accepted, but the contract is still being negotiated.
• Sold / Concluded Missives: The contract is legally binding. Neither party can pull out without significant financial penalty.

Under Offer vs Sold STC: A Direct Comparison

The Scottish Property Journey: From Listing to Sold

To understand the difference between these statuses, you need to see where they sit in the typical Scottish sales timeline.

1. The Home Report

Before a house even hits the market in Scotland, the seller must commission a Home Report. This includes a Single Survey, an Energy Performance Certificate (EPC), and a Property Questionnaire. Because the buyer sees the survey before they bid, the "Under Offer" stage is much more stable in Scotland than in England, where nasty surprises in a survey often kill deals.

If you are worried about a chain collapsing, professional cash house buyers can provide a guaranteed sale without the typical 'Under Offer' wait times.

2. Note of Interest

If a buyer likes a property, their solicitor notes interest with the selling agent. This doesn't cost anything, but it ensures the buyer is kept informed if a "Closing Date" is set.

3. The Formal Offer

In Scotland, offers are formal legal documents sent by a solicitor. They include the price, the date of entry (moving date), and any extras (like the fridge or garden shed) the buyer wants.

4. Under Offer Status

Once the seller accepts an offer, the property becomes "Under Offer." At this point:

• The seller’s solicitor sends a "Qualified Acceptance."
• The buyer’s solicitor reviews the conditions.
• The property is usually marked as "Under Offer" on the ESPC or Rightmove.

5. Conclusion of Missives

This is the "Gold Standard." Once all the conditions in the letters (missives) are agreed upon, the final letter is sent. The missives are now "concluded." The property is now officially Sold. In England, this stage (Exchange of Contracts) can take months. In Scotland, it often happens within 14 to 21 days of the offer being accepted.

Why "Under Offer" Doesn't Mean "Sold" (Yet)

Even in the efficient Scottish system, a sale can fall through while it is "Under Offer." Here are the primary reasons:

1. Mortgage Complications

Even if a buyer has an "Agreement in Principle," the lender still needs to approve the specific property and the buyer's final financial standing. If the lender’s valuation comes in significantly lower than the "Offers Over" price paid, the buyer might struggle to find the extra cash, causing the deal to collapse.

2. Chain Breaks

If your buyer is selling their own home to fund the purchase of yours, and their buyer pulls out, the whole chain can snap. This is why many Scottish sellers prefer "clean" offers from first-time buyers or cash buyers, even if the price is slightly lower.

3. Issues with Title Deeds

During the conveyancing process, solicitors check the Land Register. If there are issues with boundaries, "clogged" titles, or missing planning permissions for that loft conversion you did in 2015, the buyer’s solicitor may advise them to withdraw unless the issues are fixed.

The Legal Backbone: How Scottish Law Protects You

One of the biggest benefits of the Scottish system is the protection it offers sellers and buyers during the "Under Offer" phase.

The Role of the Law Society of Scotland

In England, "gazumping" (where a seller accepts a higher offer after already accepting one) is a common nightmare. In Scotland, the Law Society has strict professional conduct rules. If a solicitor has accepted an offer on behalf of a seller, they are generally prohibited from accepting a different offer from another buyer.

If the seller insists on taking a higher offer, the solicitor must stop acting for them. The seller would then have to find a brand-new solicitor, which causes delays and raises red flags. This makes "Under Offer" in Scotland much more secure than "Sold STC" in England.

Qualified Acceptance

When you accept an offer, your solicitor doesn't just say "Yes." They issue a "Qualified Acceptance." This is a list of conditions (usually about 20-30 clauses) that protect your interests. The "Under Offer" period is essentially a polite legal tennis match where these clauses are batted back and forth until both sides are happy.

Costs and Financials

Understanding the financial implications of the "Under Offer" stage is vital for your budget.

LBTT (Land and Buildings Transaction Tax)

In Scotland, you don't pay Stamp Duty; you pay LBTT. This is only payable after the sale is completed, but you need to budget for it during the "Under Offer" stage.

Current LBTT Rates (Standard):

• Up to £145,000: 0%
• £145,001 to £250,000: 2%
• £250,001 to £325,000: 5%
• £325,001 to £750,000: 10%
• Over £750,000: 12%

Example: If you buy a home in Glasgow for £280,000, your LBTT bill would be £3,600.

Legal Fees

Most Scottish solicitors charge a mix of a fixed fee and a percentage of the sale price (usually 1% + VAT). You will often pay a portion of this if the sale falls through while "Under Offer," covering the work done up to that point.

The Home Report Cost

As a seller, you pay this upfront. It typically costs between £300 and £900 depending on the value of your home. This is a "sunk cost"—you won't get it back if the sale falls through, but the report is valid for several months and can be reused for a new buyer.

Timelines: How Long Does Each Stage Take?

While every sale is different, the Scottish market generally follows this rhythm:

1. Listing to Closing Date: 1–3 weeks.
2. Accepting Offer to "Under Offer" Status: 24–48 hours.
3. Under Offer to Concluded Missives: 2–4 weeks.
4. Concluded Missives to Date of Entry (Move-in): 4–8 weeks.

Total Timeline: In Scotland, you can realistically go from listing your home to handing over the keys in 8 to 12 weeks.

Can You Still View a House That is "Under Offer"?

If you are a buyer and your dream home has just been marked "Under Offer," is it worth calling the agent?

The "Note of Interest" Strategy

You can still ask your solicitor to note interest. While the seller has accepted another offer, deals do fall through (as discussed above). If the current deal collapses, the seller’s agent will immediately contact everyone who has a Note of Interest on file.

Backup Offers

In some cases, a seller may accept a "backup offer." This is a formal offer that sits in second place. If the first buyer fails to secure their mortgage within a specific timeframe, the backup offer automatically moves into the primary position.

However, most sellers will not allow further viewings once they are "Under Offer" to maintain a good relationship with the current buyer.

Common Questions (FAQ)

Can I pull out of a deal when the house is "Under Offer"?

Yes. Until the missives are concluded, either the buyer or the seller can withdraw from the transaction without paying the purchase price. However, you may still be liable for your solicitor’s time and outlays (like search fees).

Does "Under Offer" mean the same as "Fixed Price"?

No. "Fixed Price" is a pricing strategy (the first person to offer that price usually gets the house). "Under Offer" is a status indicating that an offer—whether it was "Offers Over," "Offers Around," or "Fixed Price"—has been accepted.

What if the Home Report expires while the house is Under Offer?

Home Reports are generally accepted by lenders if they are less than three months old. If a sale is delayed and the report expires, the seller may need to pay for a "Replacement Home Report" (a refreshed valuation), which usually costs around £150–£250.

Is "Sold STC" legally binding in Scotland?

No. Neither "Under Offer" nor "Sold STC" is legally binding in Scotland. Only "Concluded Missives" are legally binding.

Why do some houses stay "Under Offer" for months?

This usually happens if there is a complicated chain or if the buyer is struggling to sell their own home. It can also happen if there is a major legal hiccup with the property's title deeds that solicitors are trying to resolve.

Conclusion

Navigating the gap between "Under Offer" and "Sold" is often the most stressful part of the Scottish property journey. While the terms "Under Offer" and "Sold STC" are often used interchangeably on websites, the reality in Scotland is governed by the robust process of concluding missives.

For sellers, the "Under Offer" stage is a period of due diligence. For buyers, it’s a race to secure financing. Because of the mandatory Home Report and the strict rules of the Law Society of Scotland, the "Under Offer" status in Scotland is significantly more stable than the "Sold STC" status in England.

If you are currently "Under Offer," stay in close contact with your solicitor. They are the ones navigating the "Qualified Acceptances" that turn that "Under Offer" sticker into a "Sold" sign. Whether you are moving across the street in Dundee or relocating to the Highlands, understanding these nuances ensures you stay in control of your move, your money, and your future.