Are you about to enter the property market? If so, it’s essential that you understand the concept of a property chain. Put simply, a property chain is created when multiple transactions are interlinked and must occur simultaneously for each sale and purchase to conclude.
If you’re a homeowner looking to buy a new property, it’s likely that you’ll need to sell your current property before making your next purchase. If the person buying your property also has a property to sell, this will add another link to the chain. However, if you’re a first-time buyer, you won’t need to sell your property, which can make you an easier buyer to work with from a seller’s perspective.
Keep in mind that the longer the chain, the higher the risk of a collapse, as one element of the chain not fulfilling their obligations can disrupt the entire process. There are many reasons for a chain to collapse, including issues with mortgage approvals, property surveys uncovering unknown problems, or unforeseen events such as sickness.
While it’s difficult to avoid a chain entirely, open and frequent communication is key to limiting the risk of issues. Here are some additional steps you can take to help the process move more smoothly:
Don’t base your choice of conveyancer solely on price; consider their communication skills and ability to work efficiently.
Have your financing in place before beginning your property search.
Regularly communicate with everyone involved in the transaction, including the estate agent and conveyancer.
Be upfront and honest about any factors that could affect the transaction.
Keep track of paperwork, which may arrive electronically or by post.
If you’re selling as well as buying, have all necessary property information ready in advance.
Discuss potential time frames early on to ensure everyone is on the same page.
If there are multiple buyers or sellers, agree on a single point of contact to streamline communication.
By taking these steps and staying vigilant, you can help ensure a smooth and successful property transaction, even in the midst of a complex property chain.
Comments