The Majority Of Vendors Might Have To Face The Breaking Of The Property Chain
The possibility of the breaking of a chain within a property sale is now part and parcel of a property sellers life, sadly this is some thing that a property vendor could face and is here to stay and we have no choice but to live with it. There are no official figures to show the amount of the sales that fall through due to one or more persons collapsing a chain although it is calculatedjudge that at least 30 to 40% of all sale fall through before their completion date.
The simple fact is that a greater part of property Sales in the UK will comprise a chain of some sort, the vast the lion’s share of property Sales will involve someone having to sell a property in order to purchase a new home. It is this very fact that bring into existence a chain, normally the first time buyer would be at the very bottom of this chain and can involve up to 10 different properties, so you can see the fragility a chain creates because at any time it would only take one party to withdraw their property for whatever reason for the chain to become weakened or break therefore creating uncertainty with the other remaining properties within that chain.
There are so many contrasting reasons why a chain can end up weakened or break, they can vary from something as simple as a potential buyer has simply changed their mind to a problem with a survey, the vendee unable to find another property or even the buyers unable to secure financing.
The true figures surrounding the breaking of property chain can be hard to pin down as there are no real official body to record the number of property deals that fall through, putting your property on the open market in today’s climate will see you with a 50% chance of arriving at the point where contracts are exchanged.
It is unlikely that in the event of a property sale falling through that there will much chance to recover that deal, this will leave the seller in a position whereby they will have remarket their property.
The best options is to try and avoid becoming part of a chain from the outset, although this can narrow the number of people a vendor market to, it can also leave the seller in a more comfortable position because it will be less likely that anywhere along the process that the buyers will withdraw but only if the chain break.
As mentioned ealier in this article the number one way to avoid this type of situation is not to put yourself there in the first place, that means to avoid becoming part of a chain and although this is not simple but it can be done, this will mean selling to someone who has no property to sell themselves or the vendor could even make sure that the vendee has all their finances in place or agreed in principle, the vendee could instruct their solicitor to have this stipulation in their contract so it becomes a condition of the sale.
Another and more potent condition is if the vendor could instructs their solicitor to include in the contract the presentation of a deposit, this could help to keep the purchaser focused on sticking with the process until it’s conclusion, to make this even more potent the vendor could make the deposit non-refundable, this will Put the seller in an even stronger position.
Make sure you retain the services of a experienced solicitor, a experienced solicitor has the knowledge to have all the legal matters tied down quickly, they can also instruct a vendee or a vendor on the best ways to avoid becoming involved within a chain or how a purchaser or a seller could place them self in the strongest possible position in the event that they become caught in a chain.
Estate agents works for you so tie them down to what exactly they would do if in the event you are caught up in a broken chain, make sure they keep you informed as to the number of parties involved in a chain at any one time.
In the event of a sale falling through and your in the position of having to find a new buyer fast, placing your property with one of the specialist FSBO sites may help to move your property in the shortest posible time, this may avoid you having to drop the asking price of your property.
The most important thing to bear in mind if you are one of the many victims of a broken chain, is that it is not the end of the world, the first thing to do is keep a cool head and reassess your position, only after taking stock in a calculated way can you assess all the routes available and then make the best decision on what to do next, Good luck!
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