If you are buying a property there is a fair chance you could find yourself part of a chain. Do not worry, there are no actual chains involved. What this means is the purchase is connected to other sales. Before you decide if you want to get involved in a property chain, this law-tee looks at what a property chain actually is in more detail and how it can affect a purchase.
What Exactly Is A Property Chain?
A property chain is where the purchase of your property can only proceed when another sale takes place. This can either be the seller purchasing another property or another buyer purchasing your property. The cause of a property chain can be financial, for example you could be waiting on the funds from your house for sale to buy the new one. Sometimes it can be logistical, for example the seller could be waiting to buy their new house before they can move out and sell to you. Property chains can vary in size and complexity. For example longer chains can be created where there are more sales involved.
If you need to sell your home and the buyer that is buying it needs to sell their home, this adds another link. If the seller who wishes to buy a new home has to wait for their sellers to sell their home, it adds another link. Tricky? Yes it can be. Which leads us to the next big question…
How Can A Property Chain Affect A Sale?
Depending how big the chain is, there are a few ways that a property chain can affect a sale. These are worth considering before you get involved so you are prepared and can minimise complications;
A Weak Link
When a property sale relies on other transactions, there is a chance one of those other transactions could be a weak link. If one house for sale in the chain falls through, the whole chain collapses. Not the best chain reaction, eh?
Delays
Every property transaction can take time, add even more to the mix and there is a stronger chance for delays. These can be related to slow booking surveys, financial approvals, slow conveyancing and other personal matters.
Changes In Circumstances
The longer a property purchase takes, the more time there is for changes in circumstances. This could be a seller changing their mind, market conditions changing or even you having a change of heart. Long chains leave more room for change which can make a purchase feel very uncertain and unstable.
As you can see, getting involved with a chain can be risky. That said, if you have your heart set on a property this may be the only way to make it yours. If you own a home you are likely going to need to sell it to fund your next purchase. Many sellers can be in a similar boat, having to wait for another sale to complete before they can proceed. So, if you do need to get involved in a property chain let’s look at how you can protect yourself.
How Can You Protect Yourself In A Property Chain?
Keep Communicating
Communication is key in property transactions, especially when you are part of a chain. Having regular updates with the seller to keep them informed of your position and theirs can keep the chain moving forward and give both parties confidence and peace of mind. A little communication goes a long way.
Have An Experienced Conveyancer
Property chains can be complex, having an experienced conveyancer on your team is a must. Waterstone Legal provide exceptional conveyancing services which prioritise communication, client care and efficiency. We offer a fixed-fee for all buyers and have extensive experience in handling property chains of all complexities.
Have Finances Ready
To reassure the seller, having your finances ready so they know you are good to go can give them confidence in you. If you are waiting to sell your home this will reassure the seller to wait for you and not proceed with another buyer.
Be Prepared
Nothing is guaranteed with a property chain, taking the above steps can help. Be prepared for unexpected changes and ready to pivot if you need to. Speak to your conveyancer regularly for updates on where you are at with the transaction.
The Wrap Up
Property chains can be slow, complex and unpredictable. However they are a common part of buying a property with many parties often being subject to a chain. To protect yourself from delays and complications make sure you communicate, have an experienced conveyancer by your side and finances ready to proceed. It is important both parties keep confidence in each other to stop a deal falling through. Ultimately be prepared for any unexpected changes, buying a property can be a rollercoaster. Waterstone Legal are always here to ride it with you to keep it as smooth as possible.
