Subject to contract meaning
Subject to contract means an agreement has been reached in principle but is not legally binding. In England a property is marketed as sold subject to contract between an accepted offer and exchange of contracts, and either party can still withdraw or renegotiate during that period.
Subject to contract is one of the terms you are likely to meet when buying or selling a home in England. Here is what it means in plain English, and where it fits into your move.
Why the phrase matters
It appears on correspondence to make clear that nothing said in negotiation creates an obligation, which protects both buyer and seller while checks are still being carried out.
Key takeaway
Subject to contract means an agreement has been reached in principle but is not legally binding. In England a property is marketed as sold subject to contract between an accepted offer and exchange of contracts, and either party can still withdraw or renegotiate during that period.
Frequently asked questions
What does sold STC mean?
Sold subject to contract means an offer has been accepted but contracts have not been exchanged, so the sale is not yet legally binding.
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