When a property is described as under offer, the estate agent is communicating that the seller has accepted an offer from a buyer and the property is progressing through the conveyancing process. Understanding exactly what this status means, and what it does not mean, helps both buyers and competing interested parties understand the situation.

The Legal Position

In England and Wales, a property being under offer does not create any legally binding obligation on either the seller or the buyer. The acceptance of an offer is a gentleman's agreement rather than a contract; either party can withdraw from the transaction at any point before contracts are exchanged without legal penalty. This is fundamentally different from Scotland, where the acceptance of an offer results in a binding contract called a conclusion of missives.

The under-offer status typically means the seller has instructed their solicitor to prepare the contract and has asked the estate agent to remove the property from active marketing. However, the estate agent is legally obliged to pass on any further offers received while the property is under offer, and the seller can consider those offers if they wish.

Under Offer vs Sale Agreed vs Sold STC

Estate agents use several terms to describe the same general status: under offer, sale agreed, and sold subject to contract (sold STC) all mean broadly the same thing: an offer has been accepted and the sale is being progressed but contracts have not been exchanged. There is no precise legal distinction between these terms in common estate agency use, though some agents use under offer for earlier stages and sold STC when progression is further advanced.

Can You Still Make an Offer on an Under-Offer Property?

Yes. You can make an offer on a property that is under offer, and the estate agent must pass it to the seller. Whether the seller considers it or declines to look at competing offers is their decision. Some sellers agree with the accepting agent to take the property off the market and decline further offers; others remain open to higher offers, particularly early in the conveyancing process before significant costs have been incurred by the current buyer.

Summary

Under offer means an offer has been accepted but no binding contract exists. Either party can withdraw before exchange. Competing offers can be made and must be passed to the seller. Sale agreed and sold STC are broadly equivalent terms. Registering interest in an under-offer property ensures you are informed if the sale falls through before exchange.