Property chain
The term ‘property chain’, sometimes referred to as a housing or real estate chain, describes a sequence of homebuyers and sellers whose transactions are dependent on one another.
Each member of the chain is both selling and buying a property, other than those at the beginning, who are only buying, and those at the end, who are only selling. There can many people involved in a property chain, each with an estate agent, solicitor, surveyor, mortgage lender, and so on.
Property chains develop because a homebuyer will generally need to sell their current home in order to finance the purchase of a new home. The seller of the home they are buying will generally require the sale to finance their own new house purchase, and so on.
A property chain can be a slow and complicated process and can frequently collapse. If one particular party is delaying the process, it will impact upon the entire chain, therefore, the chain will only progress at the pace of the slowest link. It is the responsibility of the respective solicitors to ensure that the chain progresses towards its conclusion.
Some of the variables that can result in a chain collapsing include:
- One of the buyers or sellers in the chain decides not to move.
- One of the buyers or sellers has a change of circumstances.
- One of the buyers is blocked from obtaining a mortgage.
- A property survey reveals problems.
- A conveyancer takes too long to complete the necessary paperwork.
- One of the partie’s fails to sign required documents on time.
Some property chains can be much easier than others:
- If a seller has several offers to choose from they may opt for the buyer who is not in a chain trying to sell their existing home (e.g. a first-time buyer or a cash buyer).
- A new-build home is often purchased directly from a developer so does not have an upward chain.
- There may be no upward chain if a seller is selling a home that is empty.
- If one or more parties are flexible and do not require a new house to be purchased before being able to sell their existing home (for exampe if they pan to rent).
A common phrase relating to property chains is ‘no upward chain’, which means that the seller is not waiting to complete a purchase for a new home. However, there may still be a chain below them.
The phrase ‘chain-free’ means that neither buyer nor seller are waiting for another transaction to be completed. This most commonly applies to the process that exists between a first-time buyer and a new-build developer.
[edit] Related articles on Designing Buildings
Featured articles and news
ECA progress on Welsh Recharging Electrical Skills Charter
Working hard to make progress on the ‘asks’ of the Recharging Electrical Skills Charter at the Senedd in Wales.
A brief history from 1890s to 2020s.
CIOB and CORBON combine forces
To elevate professional standards in Nigeria’s construction industry.
Amendment to the GB Energy Bill welcomed by ECA
Move prevents nationally-owned energy company from investing in solar panels produced by modern slavery.
Gregor Harvie argues that AI is state-sanctioned theft of IP.
Heat pumps, vehicle chargers and heating appliances must be sold with smart functionality.
Experimental AI housing target help for councils
Experimental AI could help councils meet housing targets by digitising records.
New-style degrees set for reformed ARB accreditation
Following the ARB Tomorrow's Architects competency outcomes for Architects.
BSRIA Occupant Wellbeing survey BOW
Occupant satisfaction and wellbeing tool inc. physical environment, indoor facilities, functionality and accessibility.
Preserving, waterproofing and decorating buildings.
Many resources for visitors aswell as new features for members.
Using technology to empower communities
The Community data platform; capturing the DNA of a place and fostering participation, for better design.
Heat pump and wind turbine sound calculations for PDRs
MCS publish updated sound calculation standards for permitted development installations.
Homes England creates largest housing-led site in the North
Successful, 34 hectare land acquisition with the residential allocation now completed.
Scottish apprenticeship training proposals
General support although better accountability and transparency is sought.
The history of building regulations
A story of belated action in response to crisis.
Moisture, fire safety and emerging trends in living walls
How wet is your wall?
Current policy explained and newly published consultation by the UK and Welsh Governments.
British architecture 1919–39. Book review.
Conservation of listed prefabs in Moseley.
Energy industry calls for urgent reform.