Managing the problems associated with property chains

By Helen Checketts, Head of Conveyancing

For those that don’t know, a property chain is a sequence of linked property transactions, where each transaction depends on the completion of another.

For example, if you are buying a new home while selling your current one, the purchase of your new home relies on the sale of your current property.

When there are multiple instances of this, you get a chain of buyers and sellers, all interdependent.

Each party in the chain must complete their transaction for the chain to progress.

Of course, this increases the risk of delays, as any issue with one transaction can affect the entire chain.

It goes without saying that this introduces some serious complexity in the conveyancing process and the eventual sale/purchase of your house.

You’ll also find that chains cause significant stress for everyone involved, as failures in one part of the chain impacts all the parties.

Not ideal, for sure – but not impossible to navigate either with the right advice!

Common problems in property chains and how to mitigate them

Delays in mortgage approvals are probably the most common issue I’ve seen, and they can significantly affect the progress of a property chain.

These setbacks often arise from documentation issues, lender processing times, or buyer credit problems.

To help avoid these delays, we always recommend you start the mortgage application process early and have all the required documents prepared in advance.

It can also help to maintain regular follow-ups with lenders to accelerate the approval process.

Problems discovered during surveys, such as structural issues or discrepancies in property valuation, can also cause delays and even renegotiations.

That’s why we suggest you choose reputable surveyors and consider obtaining second opinions if necessary.

Be prepared to renegotiate based on survey findings and ensure that any agreed repairs or price adjustments are documented and communicated promptly.

Gazumping, where a seller accepts a higher offer after agreeing to a sale, and gazundering, where a buyer lowers their offer just before contracts are exchanged, can be very disruptive to the overall property chain too.

However, your solicitor might suggest using lock-in agreements to secure the deal, which can often help avoid these problems.

Encouraging quick progress to contract exchange can also minimise the window for these practices to occur.

Aligning completion dates across the chain can also be challenging. Misaligned dates can cause significant delays and additional costs.

To mitigate this, we always suggest our clients set realistic timelines and involve all parties in scheduling discussions.

You might want to speak to your solicitor to develop contingency plans for unexpected delays to ensure that the chain can proceed smoothly even if issues arise.

In all of these instances, I would like to stress that communication is vital to prevent misunderstandings and ensure timely actions.

I’ve seen, time and again, how breakdowns in communication can lead to delays and frustration.

You should be having regular check-ins with all parties involved and update them on any breakthroughs or setbacks.

Make sure everyone understands their own responsibilities and timelines to keep the process on track.

Managing your expectations

I would recommend you have a detailed timeline with key milestones in place – it gives you a better grasp of the process.

But, please set realistic expectations!

Discuss the various scenarios and develop a contingency plan with the help of your advisers (including your solicitor) so you can prepare for potential outcomes.

Be flexible and have patience!

Communication and openness are key!

As mentioned above, you need to communicate with every party in the chain and set up regular check-ins.

If possible, build a network of reliable contacts and make sure everyone is aligned on timelines and expectations.

Your solicitor is often a good place to go for this – we’ve worked with hundreds of individuals and businesses that operate within the conveyancing process so we can help you work out which one is best for you!

Try to find professionals who are open and honest about their fees and timescales.

For example, we pride ourselves on providing ‘No Hidden Fees’ quotes for any sale or purchase via our website.

We also don’t charge referral fees and all our referrals are individuals and businesses we have developed relationships with over our years of practice.

So, if you’d like help during the conveyancing process from a team of solicitors with great experience in the matter, why not consider us?

We’re here to help you with every aspect of buying or selling a property, from contract writing to simply assisting you with the complex legalese that goes with it!

For a simple, easy and jargon-free conveyancing, please get in touch.