What does it mean if I am in a chain?
When first hearing the words ‘property chain’ our team understand why many of our valued clients may, initially, become concerned. There is, however, no need to be unduly apprehensive about your property transaction when in the hands of MG Legal’s property conveyancing solicitors in Preston and Lancaster.
What is the chain?
The chain is the legal terminology used whereby different parties are linked by their property conveyances, in that each transaction is dependent upon the Completion of another.
Think of it as a domino effect, one domino is not able to move until the one before has fallen. This is exactly how a property chain works; the Completion of one transaction cannot take place without Completion of the one before. This is what can bring about certain issues within the conveyancing process, and can include the following:
Common issues that can be experienced in a property chain:
- Prior to Exchange of Contracts, nobody in the chain is legally bound to proceed to Completion of the matter. This can mean that the chain may be in danger of one party pulling out, which, as referred to above, would have a domino effect on the remainder of the chain.
- Where the chain involved is lengthy, and complex, it can be difficult to come to an agreement that all parties are happy with, particularly when agreeing Completion dates.
- One party may simply change their mind on proceeding with the transaction and, evidently, the more parties to the chain there are, the greater this risk becomes.
- The conveyancing process is, essentially, where all of the due diligence about a property is carried out. Therefore, should the due diligence bring about potential issues, for example as a result of adverse survey or search entries, this may result in a party withdrawing and, consequently, jeopardising the chain.
- Financing of a property transaction is a big consideration and, should there be issues in securing the same, for example by way of a legal mortgage or bridging finance, this may mean that a transaction may fall through and, you guessed it, collapse the chain.
So, what can you do?
As you can see, there are a number of factors that may affect the way in which a chain of property transactions proceeds. Our Preston solicitors discuss the potential resolutions when dealing in property chains, inclusive of the following:
- Choosing the right solicitor for you is essential, so, why look any further than the expertise of our expert property solicitors. Our team are specialists in conveyancing transactions, inclusive of those that involve lengthy chains, making such matters a walk in the park for us. Our team are on your side, and always have your best interests at the forefront, see for yourself by reading some of our glowing reviews, here.
- Communication is key, particularly when there is a chain of parties involved. Nobody likes playing Chinese whispers! It is, therefore, important that you lay all of your cards on the table in order that our team can work with you, not just for you. We will keep in touch with you, and provide you with regular updates on your conveyance, however, if you have any queries to raise, these should be raised at the earliest possible opportunity, in order that there are no unnecessary delays or risks of the chain collapsing as the matter progresses.
- As discussed above, none of the parties involved are legally bound to purchase, or indeed sell, a property until Contracts have been formally Exchanged. Progressing to Exchange as soon as possible would ensure that all in the chain are ‘locked in the chain’, however, there are, of course, a number of important considerations to be had before proceeding to Exchange of Contracts, all of which are explained in our Preston solicitors’ blog on pre-exchange checklists, which can be viewed here.
- In some instances, various parties can agree to ‘break the chain’. Essentially, this means that the chain is broken in order to facilitate a particular transaction, or indeed transactions. This, often, involves one link in the chain moving in with family or friends, or other temporary accommodation, in order that the rest of the chain may proceed. This can preserve the chain, and ensure that matters proceed, however, would involve one party agreeing to do so.
- Obtaining early confirmation of the chain involved in your conveyance, inclusive of your position in the chain, is also helpful. The estate agents, at commencement of the transaction will be able to advise of the chain involved and, indeed, the length of the chain. Additionally, this is an initial query that is always raised by our Preston solicitors. This is in order that, at the earliest, we are aware of the chain involved. This allows us to manage expectations in respect of Completion accordingly, but also encourages the early communication between parties and any queries they may have, to avoid any issues as the matter progresses further.
As you can see, there are a number of different ways in which a property chain can be affected. This is why it is so important to ensure that you have the experience of MG Legal’s property solicitors on board. Our team understand that, when in a chain, there can be the requirements of a number of different parties to satisfy. Dealing with such matters on a daily basis makes our team experts in what they do so, if you are in a chain, do not be unduly concerned as our team are on hand to ensure all runs smoothly.
So, if you are selling or buying a property, and have concerns as to property chains, contact our team of Preston solicitors who will soon be able to put you at ease, get in touch with us at firstname.lastname@example.org, and we will be on hand to assist you.
Alternatively, if you have any other property query, submit an online enquiry to our local solicitors today, here, where our team will respond as soon as possible.