
What is a Property Chain?
If you are buying or selling a property, you may have heard your property lawyer or estate agent mention the phrase ‘the property chain’.
It’s a phrase that many property lawyers and estate agents use frequently, however if you are not familiar with the home moving process, hearing this term may be confusing.
A property chain occurs when you have more then one property transaction connected.
Example of a property chain:
- Start of the chain: First-time buyer who is not selling, just buying their first property.
- Middle of the chain: Homeowner who is selling to the first-time buyer and is buying from a another home mover.
- End of the chain: Property being sold by executors of an estate and therefore do not have a related property purchase.
What is a chain free transaction?
This is when you only have the buyer and seller. There is no onward purchasers involved
Why do property lawyers and estate agents want to know about the chain?
Each party in the chain needs the sale to go through in order to proceed with any onwards purchase.
It’s important for each ‘link’ in the chain to be progressing at a similar pace to ensure that proposed completion dates coincide. If something isn’t going to plan for one particular party, every one else in the chain will be affected.
Common causes of chain delays:
There are many scenarios that can cause delays in a chain, but the most common are:
- A property buyer changes their mind and withdraws from the purchase
- A property survey uncovers major issues
- A mortgage offer is withdrawn
- Delays in searches, paperwork or conveyancing enquiries
Top tips if you are in a property chain:
Being in a property chain is very common so here are a few tips to help manage it:
- Choose a proactive property lawyer with strong local property lawyer and estate agent connections. This will help identify parties in the chain and ensure any potential issues are identified early on.
- Stay in close communication with your property lawyer and estate agent
- Be organised – apply for mortgage offers, provide ID documents, provide source of funds documents early on to reduce the risk of delays
- Be prepared to be flexible to accommodate other parties in the chain.
How can we help?
If you are planning on buying or selling a house, get in touch with our specialist residential conveyancing solicitors.
Contact our team by telephone on 0330 123 1229, complete our contact form. or send us an email via info@smithpartnership.co.uk.
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