what does sale agreed mean

What Does ‘Sale Agreed’ Mean?

If you have offered on a property and the seller has accepted your offer, you may be told that the property is now “sale agreed”. This is an important step, but it does not mean that you legally own the property or that the sale is complete. There are still several steps to go before the contracts are signed and the purchase becomes legally binding.

What Does ‘Sale Agreed’ Mean?

“Sale agreed” simply means that the seller has accepted an offer from a potential buyer. At this stage, the seller will usually take the property off the market, although the property has not yet been legally sold. The buyer can still decide not to proceed, and the seller can also withdraw before contracts are formally exchanged. Once a property is sale agreed, the next stage is to deal with the legal and practical matters needed to complete the purchase.

What Happens After a Property Is Sale Agreed?

The buyer will normally pay a booking deposit to the estate agent or auctioneer. The amount can vary and may be agreed between the parties. Paying this deposit does not make the purchase legally binding. There may still be issues that affect the buyer’s decision to proceed. For example, a structural survey might identify problems with the property, or the buyer may not obtain the mortgage they expected. If the purchase does not proceed at this stage, the deposit is generally refundable. The buyer’s solicitor will also begin the conveyancing process, including reviewing the property’s title and dealing with the necessary legal documentation.

Is Sale Agreed the Same as Sold?

No. Sale agreed does not mean sold. The sale becomes legally binding when the contracts have been signed and exchanged. Until then, either party may generally withdraw from the transaction. Once contracts are exchanged, the buyer and seller are legally committed to completing the sale, subject to the terms of the contract. This is why there can sometimes be a significant period between a property being marked “sale agreed” and the actual completion of the purchase.

What Happens When Contracts Are Exchanged?

Before contracts are exchanged, the buyer’s solicitor carries out the necessary legal checks on the property and ensures that the title is in order. Once the contracts are signed and exchanged, the sale becomes legally binding. The transaction then moves towards closing, when the balance of the purchase price is paid, and the relevant transfer documents are completed. Following completion, ownership of the property passes from the seller to the buyer.

Can a Buyer Pull Out After Sale Agreed?

Yes. Being sale agreed does not by itself create a legally binding contract. A buyer may decide not to proceed before contracts are exchanged, for example, because of issues identified during a survey or because they cannot obtain the required finance. The position changes once contracts have been exchanged, as the parties are then legally committed to the transaction.

What Should You Do Once a Property Is “Sale Agreed”?

If you are buying a property, it is important to contact your solicitor as soon as possible. Your solicitor can begin the conveyancing process, review the title and advise you on the legal steps required before contracts are exchanged. It is also sensible to arrange any property survey and ensure that your mortgage or other financing is in place before committing to the purchase.

Need Help Buying or Selling a Property?

Buying or selling a property involves important legal steps, and understanding what happens between “sale agreed” and completion can help you avoid unnecessary problems. McCormack Solicitors in carrick on shannon can advise you throughout the conveyancing process and assist with the legal work involved in buying or selling property.

Frequently Asked Questions

 

Does sale agreed mean I own the property?

No. You do not legally own the property simply because your offer has been accepted. Ownership passes after the sale has been completed.

Is a sale agreed property legally sold?

No. The property is not legally sold until the relevant contracts have been signed and exchanged and the transaction is subsequently completed.

Is the booking deposit refundable if the sale falls through?

Before contracts are exchanged, the booking deposit is generally refundable if the purchase does not proceed.

How long does it take to go from sale agreed to completion?

The timeframe varies depending on the circumstances of the transaction, including the legal work, title issues, mortgage arrangements and the parties involved.

Speak to A Specialist Solicitor

Wherever you are in Ireland, our team of experienced solicitors are ready to talk to you about your case. Just call  071 9621846 or email info@carolmccormacksolicitors.ie Alternatively, request a callback or send us a message and we will get right back to you.
*In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.

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