What Does "Under Offer" Mean?

What Does Under Offer Mean 1

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What Does "Under Offer" Mean?

When you browse through the homes listed for sale online, you may notice that some of them are marked as “Under Offer”. However, these listings are still appearing in the “For Sale” category, which seems rather confusing. What exactly does it means when a property is under offered?

A property is under offers when someone has made an official bid on a property that the owner has accepted. It doesn’t mean that the buyer has actually bought the property.

Once a property has been put up for sale, both parties have agreed to terms, but there may be some conditions that must be fulfilled before the deal goes through. These include things like building reports and pest inspections, which must be completed before the house can be sold.

A property advertised online as under offer can serve as a final warning to interested parties that the property is about to be snapped up for good. But it doesn’t always mean that it’s definitely going to be sold.

Under Offer Full Terminology:

Under Offer

Under offer also referred to as ‘under agreement’ or ‘under condition’, indicates that there is an offer on the property which has been accepted, the agreement has been signed, but there are still some things left to be done before the sale can go through. These could include financial approvals, legal matters, or even just minor details such as signing the paperwork. In either case, if any of these items are not completed within the agreed timeframe, then the deal falls through.

Unconditional

When a property is unconditionally owned, it means all of its terms and conditions have been met. Basically, the deal cannot go wrong. When a property is unconditionally owned, it’s essentially the limbo stage between a purchase being “offered” and “purchasable”. For example if you bought a house and the agreement is unconditional, the property isn’t really yours yet, but it will be soon. All you need to wait for is the settlement day to come round.

Conditional

Subject To Finance

In many cases, a buyer will make their offer subject to securing finance to buy the property and this clause will give the buyer time to do this. Buyers may even have mortgage pre-approval from a lender but hit a snag when they go to have their mortgage application unconditionally approved.

Should the buyer be unable to get a home loan, including if the lender values the property at less than the sale price, then the property will no longer be under offer and will be available to other potential buyers.

Subject To Sale

A ‘subject to sale’ condition is placed on a property that’s under offer when the buyer has to sell their own property first before they have the funds to buy their new home. This condition can make things tricky, however. It may take longer than expected for the buyer’s property to sell and the seller may get impatient.

As well, the buyer might not realise the price they expected from their sale and fall short of what the seller wants for their home. Both these situations could result in the offer falling through and the home again becoming available.

Subject to Building and Pest Inspections

This is where the buyer gets reports from qualified inspectors on any existing or potential problems with the home. Problems can include cracking in concrete slabs, drainage issues, mould, problems with roofing and of course, termites. Issues such as these may see the buyer pulling out of the sale.

Under Contract

When a property is under contract, or sold ‘subject to contract’, it is further down the track towards a completed sale than when it is under offer.

A property is under contract when an offer has been accepted by the seller and identical, legally binding contracts have been exchanged by both buyer and seller through the estate agent or lawyers.

As explained above, a property is under offer when a buyer’s offer is accepted but the sale is conditional – one or more provisions must be met before the property changes hands.

Sold

When a property is officially “sold”, it means that the property has settled and transferred into the buyers’ name/s, and there has been an exchange of contracts through the conveyancing process. Once settlement day has passed, the contract has officially been completed, the new owner can pick up their keys from the estate agent, and they’re set to move into their new home or do whatever they have planned.

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