Meaning of the term "Under Offer"

[Bedlam]

Hi,

What exactly does this term mean. Am I correct in thinking that it is where a seller has accepted an offer from a purchaser but before contracts are exchanged. If this is the case is it binding on either party in anyway?

Thanks

Bedlam

 

[LDFerguson]

As far as I know it means the same as "Sale Agreed" and is as you describe. It's not binding on either party, but it stops the auctioneer from showing the property to anyone else.

 

[Bedlam]

Thank you for the reply, In your opinion could you see an Auctioneer stating that a property was "Under Offer" when in actual fact there was none made with a view to generating interest in the property. Or would this be seen as being unethical.

Thanks

Bedlam

 

[Purple]

Thank you for the reply, In your opinion could you see an Auctioneer stating that a property was "Under Offer" when in actual fact there was none made with a view to generating interest in the property. Or would this be seen as being unethical.

Thanks

Bedlam

It would seem a bit stupid in the current market.

 

[Paulone]

it means the same as "Sale Agreed" and is as you describe. It's not binding on either party, but it stops the auctioneer from showing the property to anyone else.

Don't think that's quite correct. 'Sale agreed' means that the purchaser has agreed a price and has paid (to the EA) a refundable 'booking deposit' that is their statement of serious interest. This status suggests that the purchaser and vendor are moving forward to the formal, legal phase.

As far as I know, this does not prevent the EA from showing the house again - on myhome, you can still click into EA's sale agreed properties - and it's easy to become un-sale agreed for a variety of reasons. In that case you would want the EA to have another potential purchaser lined up.

I suppose it's 'formal' in the sense that you can't go sale agreed with anyone else until that status is revoked through the refunding of the purchaser's booking deposit. Nothing is legally-binding until contracts are signed.

I imagine 'under-offer' is more of a marketing term that might describe a bidding situation where one or more offers are on the table but a deal has not yet been agreed. I guess it might be used to indicate that if anyone has any interest, they should contact the EA as soon as possible rather than waiting for sale-agreed.

 

[mf1]

Thank you for the reply, In your opinion could you see an Auctioneer stating that a property was "Under Offer" when in actual fact there was none made with a view to generating interest in the property. Or would this be seen as being unethical.

Thanks

Bedlam

In todays market, that would be professional suicide! Is this a real case or hypothetical? And if its real, stand back and ask yourself, why would they do that?

mf

 

[MrMan]

under offer = offer in place, yet to be accepted, usually at advanced stage of negotiation.

 

[pinkie123]

this can be the case - EA may not be playing games. My house is under offer at the moment. The reason not sale agreed yet as I have not accepted amount and bidder is looking for more money from bank.