If you have been looking at properties for some time, you may have noticed some are advertised as “no chain”. But what is a property chain and how does it affect your buying process? Allow us to explain…
What is a property chain?
A property chain is formed when there are numerous transactions related to one another and must occur at the same time to be completed.
If you already own a property, you will likely need to sell your property before you can purchase the next one. And, if the person buying your property also has a property to sell, they will add to the chain. First-time buyers, however, will not need to sell in order to move. From a seller’s perspective, this makes the buying process a lot easier.
If the chain breaks
The longer the chain, the greater the chance of one element falling apart. This will cause the chain to break and put a stop to the buying and selling process for everyone else involved. But what are the reasons behind the chain collapsing? Here are just a few:
- One of the buyers is struggling to secure a mortgage
- One of the buyers or sellers backs out
- A property survey reveals hidden issues and the buyer no longer wishes to proceed
- One of the legal firms involved may be slow in processing or requesting information
- A buyer attempts to renegotiate the terms of the transaction
Avoiding a chain can often be quite difficult, but you can reduce the risk of potential problems by communicating well with others.
Ensuring a successful chain
To make buying through a chain easier, there are many things you can do. Firstly, it’s important to make sure you are with the right conveyancer for your needs. Don’t just make a decision based on price, you need to consider their communication skills and ability to move at a quick enough pace. You will find that this will save you more than to go straight for the cheapest available.
It’s important to keep in regular contact with everyone involved in the transaction, especially the estate agent and conveyancer. At the same time, you will want to keep track of any paperwork and documents that are involved in the transaction to ensure nothing gets lost in the process. The paperwork will need original signatures, meaning they may take time to arrive. However, when they do arrive, be sure to check through everything thoroughly and flag up anything that you may think affect the transaction process as soon as possible.
If you are in the middle of the chain and are selling as well as buying, you must provide information about the property. This should be prepared in advance to ensure a smooth handover.
Finally, be aware of timeframes. Discuss this as soon as you possibly can to ensure each person involved is aware of the goals, as doing so will make things easier when you try to push things along.
Ensure a strong chain with a valued conveyancer
As you can see, there are many ways to ensure a chain moves along without any bumps. Working with a reputable conveyancer is a key ingredient to making this happen, which is where we come in. At Betesh Middleton Law, we strive to make the buying and selling process smooth. Get in touch to see how we can help.