Conveyancing Chains
In England and Wales conveyancing practice has developed in such a way that chains of transactions can form.
Most people who own a house and want to move need to sell their house in order to afford a different house. Every chain starts with one buyer who does not have a property to sell, and ends with one Seller who does not have a property to buy. In between can be any number of parties who need to sell and buy on the same day. When a chain completes, all the transactions complete one after the other on the same day.
This is the advantage of chains, that they remove the need for bridging finance on a purchase, or temporary accommodation on a sale. But chains are not without their downsides.
All transactions in the chain are dependent on each other. All must exchange at the same time and all must agree the same completion date. If there is a problem somewhere in the chain, all parties will have to wait until it is resolved. This can cause considerable friction, particularly among parties several transactions removed from the actual problem. It is extremely frustrating to be ready on your own transactions and to have to wait for something else to be resolved that is completely out of your own hands.
The more parties there are in a chain, the more likely it is that one of the transactions will encounter a problem which causes a delay. It is also more likely that one party will not proceed whether withdrawing by choice or because of a change of circumstances. In these cases the whole chain collapses and an alternative Seller or buyer has to be found. Even when a new party is found, they have to catch up to the rest of the chain and this means more waiting for other parties.
Where there are long chains Solicitors and estate agents will work together to ensure parties are kept informed as much as possible, although some of the causes of delay may be confidential in which case that information cannot be shared. Parties need to be patient and flexible as much as possible.
The conveyancing team at MJP Law is always dealing with transactions in chains. If you are thinking of making or accepting an offer on a property in a chain and you are concerned about what this might mean please call a member of the conveyancing team on 01202 842929.