What does 'Sale Agreed' mean when buying a property?

Find out what Sale Agreed means when you are buying a property. 'What does Sale Agreed mean?' plus over 150 other property related terms and jargon in plain English

Sale Agreed

The term "Sale Agreed" (also sometimes referred to as "Offer Agreed" or "Under Offer") simply means that the buyer has made a financial offer and the seller of the property has accepted that offer.

This is usually the first step in purchasing a property. You say, "I offer your £200,000 for the property" and the buyer says, "OK, I accept."

However there is nothing contractually binding on either party to complete the sale until contracts have been exchanged.

As such the property becomes Sold Subject to Contract.

Slightly confusing here is that different agents or websites use all four terms at this point:

  • Sale Agreed
  • Offer Agreed/li>
  • Under Offer
  • Sold Subject to Contract (or Sold STC)

All four are valid at this point but "Sold Subject to Contract" is also used after contracts have exchanged while the other three only refer to a time before exchange.

During the period before exchange both parties can walk away with no penalties and both parties can renegotiate the price (up or down).

Because it is a very insecure time for both buyer and seller it is always advisable to make sure the time between Sale Agreed and Exchange of Contracts is as short as possible (because Time Costs Deals) and much of my ebook How to Really Buy a Property is about how you can achieve this.

For more detail on the term Sale Agreed see Under Offer.

Search Results for 'sale agreed' in
How to Really Buy a Property

"... accepted offer simply means you enter the no mans land that exists between 'sale agreed' and 'Exchange of Contracts'. There is absolutely nothing binding about having an offer accepted so its worth knowing what has to be organised in order to get a more concrete deal. This twilight zone is covered in Part III, From Offer to..."

"... agents are poorly experienced or badly trained and not even they know how to really put up an offer. But the way you do it and the way you present yourself can make a substantial difference to the final price you pay. Sometimes it may allow you to get a sale agreed at a price the vendor would not previously have accepted, sometimes it may mean the vendor will sell to you and not someone else (even if the other party is offering..."

"... when considering comments made by them, be aware that: They know the longer the time period between sale agreed and exchange, the more likely the buyer will pull out and you will loose your property. (See The Balance of Power) They know, if they are experienced, when the surveyor or..."

"... reactions which may be of little benefit. From a buyer's point of view it will soon become clear how well your agent operates and if they are a disaster zone of poorly motivated and inexperienced staff sale agreed may never make it to completion. ..."

Search Results for 'sale agreed' in
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