How to sell house without worried about broken chain?

broken house chainHouse sale should happen in a smooth way. You should not be worried about the broken chain. If you understand the meaning of chain, you will take enough precautions so that the sale will happen in an effortless manner. In a chain, there will be buyers and sellers who will perform transactions simultaneously. If there is break in either sale or purchase, it will affect all the people that lie down the line.

How to avoid the chain?

The property chain can be avoided by taking certain precautions. If you would like to purchase a new house, you would like to dispose of your old house. In this case, the buyer should purchase your hold house by paying the total money. If the buyer opts out of the property, you will not be able to purchase the new house. Thus, the vendor of the new house also will be affected. Thus, the issue will affect all the stakeholders.

As per the Government figures, it is estimated that 33% to 36% of property transactions are failed in this way. Through this process, the buyer will lose lot of amount. Regardless of the failure of the deal, the money that is paid to the surveyor and estate agent cannot be refunded as they are offering services as part of their profession. The legal fee required to buy the property will not be refunded.

Causes of breakage of chain

If there are tight deadlines, the house chain will break. You might not be able to complete the paperwork before the deadline. You might have failed to get finance in the last minute due to technical reason.

In some cases, the buyer will change the mind and the entire deal will be cancelled. There will not be any obligation on part of the buyer until the exchange of contract. Hence, the buyer will have complete freedom to withdraw from the plan. The buyer will not be obliged to pay any damages that are incurred in this process.

If the survey reveals a new issue which was not known earlier, the property purchase process can be delayed or cancelled by the buyer. In some cases, the buyer will reduce the offer price in the last minute leading to the complete failure of the property sale. The house chain phenomenon is on the raise in UK. For that reason, necessary precautions should be taken by sellers who would like to purchase another property based on the sale proceeds.

If the buyer decreases the purchase price before the exchange of contracts, the seller has to make a decision either to accept or reject the renewed offer. The lender should make mortgage offer formally to the buyer. If there is delay in this process, it is not possible to exchange contracts.

In order to overcome the house chain, you should avoid the chains at all costs. You should be able to decline the offer if you are held up in the chain. You should manage required finance and bridge loan so that there will not be last minute setbacks.

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