You must have seen the signs — the estate agents’ signs, we mean. Perhaps they’ve said Sold Subject To Contract, or Under Offer, or Sale Agreed. But what does this all really mean?
The National Trading Standards service is trying to cut through the jargon by giving estate and letting agents clearer definitions about what terms they use and when — whether on boards in the street, their own office windows or on the Rightmove and Zoopla websites.
‘Incorrect descriptions can lead to frustration for all involved in buying or renting.
This updated guidance is intended to provide consistency and clarity and we hope this helps reduce unnecessary confusion,’ says Emma Cooke, information officer at the Trading Standards team governing the property industry.
The National Trading Standards service is trying to cut through the jargon by giving estate and letting agents clearer definitions about what terms they use and when
But even estate agents have welcomed the Trading Standards move. ‘It can become confusing for some consumers,’ says Nathan Emerson, chief executive of Propertymark, the main estate agents’ trade body.
‘So we’re pleased that agents now have access to an easy breakdown of terminology to help inform their clients, provide consistent clarity, and avoid possible frustration,’ he adds. Here are the changes:
New On The Market
This should only be used on a home that has not been advertised since it was last sold or let out.
This is to stop a dodgy practice — ‘portal juggling’ — where homes are put on sale for a while, taken off the market, and then re-listed online straight away as ‘new’ in order to appear at the top of the screen display when buyers do a search.
New Instruction
This doesn’t necessarily mean the home is new on the market. It refers to a property which an agent has just been instructed to sell or let but which may have been on the market through a rival agent who failed to find a buyer or tenant.
Reduced
This can only be used if there is a genuine reduction against a previously-advertised sale price or rent.
Under Offer
Trading Standards says this means ‘where an offer has been accepted by the seller, but (for example) contracts may not have been prepared or the buyer may not be in a position to proceed’.
So if, say, a buyer can’t get a mortgage after making an offer, the deal falls through and the home goes back on sale.
Sold Subject To Contract
A seller may have accepted a buyer’s offer but while the paperwork is being prepared the home may stay on the market.
If so ‘this decision should be clearly stated on property listings’ says Trading Standards.
Sold
No confusion here — yes there is. A buyer has become the new legal owner but the word ‘sold’ should now be removed online and boards be taken down in line with council rules.
This should stop ‘sold’ boards being left by agents seeking publicity.
Exchange of Contracts
The point at which seller and buyer are committed to the deal. Before this point, either can walk away without incurring any cost.
Completion
This is when the transaction is complete and ownership passes from seller to buyer.
Gazumping
When a higher offer is made and accepted on a property (before exchange of contracts) even after an offer from an earlier buyer has been accepted.
Gazundering
When a buyer lowers the amount they will pay at the last minute so a seller is forced to accept less money or risk losing the purchaser.
There are further changes coming this autumn to make the house buying process more transparent.
To give buyers more information, Trading Standards will want to see details including utility providers and potential flood risks included on the listing.
