Why do some property chains collapse - and how to avoid it?

Olivia Hawkes, Conveyancing Executive in our Residential Property team, explains why a property transaction can sometimes stall.

A property transaction can pause or at worse, collapse, for various reasons when selling or purchasing which has a 'knock on' effect to all in the buying and selling chain.

One collapse causes all parties to be stalled until everybody is in a position to proceed.

The most common causes of a chain collapsing is:

• A buyer or seller withdrawing their offer - simply because they've changed their mind, found another property, or experienced a personal change such as an illness or the need for relocation that influences their decision not to buy.
• A lender refusing a mortgage, reducing the amount they'll lend after a valuation of the property, or the buyer's financial circumstances changing, meaning they can no longer afford to purchase that particular property.
• Structural defects - may be highlighted on receipt of a buyer's survey causing them to renegotiate pricing or withdraw altogether.
• Issues such as missing planning permission or building regulation approvals, lease complications or title defects can delay the conveyancing process and/or cause buyers to be hesitant to proceed over their concern for future issues.

Not all sales fall through when a chain collapses, however - sometimes it's possible to get the transaction back on track or even find a new buyer.

The best advice for all sellers and purchasers is to be financially prepared, act promptly during the conveyancing process, maintain good communication with everyone involved, be clear on all viewings and have all documentation finalised before making or accepting offers.

For more information, please contact Olivia Hawkes in our Residential Property team on 01603 625231 or email orhawkes@cozens-hardy.com or Partner Rebecca Edwards on raedwards@cozens-hardy.com