If you are looking into buying a house, you might have come across the term chain-free. Have you been wondering what this means? Slater and Gordon are here to explain.
Slater and Gordon have expert property solicitors ready to deal with all aspects of residential freehold and leasehold conveyancing.
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What is a property chain?
A property chain is, where the buyer of a property needs to sell their own property to fund their purchase. The person buying the property that your buyer is selling may themselves have a property to sell and so the chain continues. This pattern may repeat itself many times over until the chain reaches somebody who does not need to sell a property to fund their purchase. This person will be at the bottom of the chain.
At the top of the chain, there will be somebody who is selling their property but not buying on. Between these two people, there could be any number of people who are both selling and buying, all linked together in a conveyancing chain.
A simple chain could be:
While this is a simple chain, it can get much more complicated, if more parties are involved
Risks of a property chain
The chain is at risk if one party is no longer able to complete the deal. The more parties involved, the bigger the risk. There are various factors that put a property chain at risk:
- One party finds a better home or they simply decide not to buy or sell at all.
- receives a better offer than the one currently linked in the chain.
- A buying party is having troubles receiving a mortgage deal.
- Agreed dates are delayed which might move crucial moving dates for other parties
- A party may decide to withdraw from the deal for a personal reason.
What is gazundering and gazumping?
Both gazundering and gazumping put a property chain at risk:
- Gazundering: A buyer reduces their offer at last minute.
- Gazumping: A seller accepts a higher offer from someone else at last minute.
Both tactics are legal but unfortunate when it involves a property chain. If you are thinking about buying or selling into a property chain, we want you to be sure you are happy with the deal before you agree to it.
How can a solicitor help?
A solicitor or conveyancer can help to stay on track. It is crucial that everyone involved in the deal is working closely together. Each party should complete their work as quickly as possible to avoid any delays in the crucial timeline.
If you are thinking about in a chain, feel free to contact us. We are not afraid of the extra challenge and will work hard to speed up the process and stay on schedule. If you have any questions regarding property, call us now on freephone .
S+G were very professional and calm throughout the process, especially in the final week leading to exchange and completion, coming up with sensible solutions to prevent my buyer's solicitor from delaying the process any further. I cannot recommend them enough. Mr B (residential conveyancing case)
I am very pleased with the service I have received. I had a complicated chain between different towns both buying and selling. Excellent communication skills and keen to go extra mile to provide you with the best of her ability. The completion happened within timescale promised. Anonymous (residential conveyancing case
We've just moved into our new home. The Manchester branch couldn't have been more helpful, patient or kind. Really quick to get back to us and thoroughly explained everything to make sure we could understand it. I would highly recommend Mrs D, Manchester (residential conveyancing case)