What is a chain? This is a number of property transactions, buyers and sellers who are all connected. If Mr A is selling to Miss B, and Miss B is purchasing from Mr C, and then Mr C is also purchasing another property. They would all be within the same property chain, this would be a chain of 3. They would all be connected to each other.
If the buyer of your property is already in a chain, this will add to your ongoing chain on the property you are purchasing. The longer the chain, the longer it will take to complete the transaction on the day of completion. If the chain your buyer is in is quite long, the money will need to be transferred up the chain before it reaches your solicitors to complete your sale. If you are also purchasing a property as well as selling, you would then need to send this money on to your seller’s solicitor to proceed with the completion.
Another point to consider with a long chain is that if one party pulls out, this can be due to an issue with the house or due to the length of time it is taking, this could lead to the collapse of a full chain depending on where they are placed within the chain. If the person of the bottom of the chain was to pull out, for example a first time buyer, this would cause issue for everyone else in the chain. As the house at the bottom of the chain would need to find a new buyer and begin the whole process again. Everyone else within the chain would need to delay their move until the new buyer is ready.
