When an offer lands on your table, your estate agent should promptly clarify your potential buyer's position and how they intend to finance the purchase. This could be a cash buyer (with proof of funds), a mortgage-backed buyer with no property to sell (including first-time buyers), or a buyer with a property to sell (with or without a mortgage). In the last scenario, a chain check is necessary.
A chain check is a crucial step carried out by your estate agent when an offer comes from a potential buyer with a property to sell. This process involves contacting the potential buyer's estate agent to gather details of the lower chain, including names, addresses, and positions of all buyers involved in the chain.
Consider this example of a property chain:
- Your Property
- Mr and Mrs Smith (buying with funds from house sale and a mortgage – 147 Anne Street, Kendal- Sold via Estate agent 1 to;
- Mr & Mrs Jones – 16 London Road – (buying 147 Anne Street with cash from their house sale. Sold via Estate Agent 2 to;
- First Time Buyers (buying with a mortgage)
The chain details should be explained to you, the seller, along with your offer. This way, you're fully aware of the transaction's intricacies. If you accept an offer, your agent will liaise with other estate agents in the chain to ensure a smooth sales process.
Your agent should conduct weekly checks, ensuring that necessary surveys and searches are satisfactory down the chain. However, remember that in England, any buyer or seller can withdraw before the exchange of contracts. Therefore, a longer chain can increase the risk of a sale falling through.
When it comes to agreeing dates and completion, all parties in the chain must agree on the same day for completion. The solicitors will pass suggested dates up and down the chain until one date is agreeable to all parties.
In conclusion, understanding property chains can help you navigate the property buying or selling process more smoothly. Stay tuned for more insightful posts on all things property!
