What does "sale agreed" mean, and am I committed?
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Short answer
Sale agreed means the seller has accepted your offer and the property is taken off the market, but it is not legally binding. Neither side is committed until contracts have been signed and exchanged. Until then the seller can still consider other offers, and you can walk away with your booking deposit refunded.
What changes at sale agreed
Your offer has been accepted and the estate agent marks the property sale agreed. You are usually asked to pay a booking deposit and to give the agent your solicitor’s details. The agent then sends both solicitors a Sales Advice Notice setting out the property, the agreed price, the buyer and seller, and the two solicitors. That is the start of the legal process, not the end of the sale.
What does not change
You do not own the property, and the seller has not sold it. An accepted offer and sale agreed status are not legally binding in a standard private-treaty sale. The transaction becomes binding only when contracts have been signed and exchanged by both sides. Until then the seller can still consider other offers, and you can withdraw.
The two deposits
- The booking deposit goes to the estate agent at sale agreed. It is refundable and commits you to nothing. Its practical purpose is that your solicitor can start reading the title.
- The contract deposit is paid when you sign the contracts. It forms part of the purchase price: 10% of the price, less the booking deposit already paid and less any Help to Buy amount you are receiving.
Between sale agreed and signing
The seller’s solicitor issues the contracts and title documents. Your solicitor investigates the title, raises pre-contract enquiries, and you arrange your survey and finalise the mortgage. Only when the contract is in order do you sign. Signing to get the keys faster is the one thing not to do: once contracts are signed and exchanged, the sale is legally binding on both sides.
The exception: auctions
At auction the position is reversed. Once your bid is accepted you sign a binding contract on the day and pay a non-refundable deposit, so the legal checks have to be done before you bid.
Frequently asked questions
When does it become legally binding?
When contracts are signed by both sides and exchanged. Being sale agreed does not bind you: until that exchange either side can walk away, and the estate agent must still pass any further offers to the seller.
What is the difference between the booking deposit and the contract deposit?
The booking deposit is paid to the estate agent at sale agreed and is refundable. The contract deposit is paid when you sign the contracts, is part of the purchase price, and is 10% of the price less the booking deposit and any Help to Buy amount.
Can I withdraw after sale agreed?
Yes, at any time before contracts are signed and exchanged, for example if your loan approval falls through. Your deposit should be fully refunded and Jacob Law LLP does not charge a professional fee for the work done up to that point.