Property chains
Even if you are a first time buyer, property chains can affect you.
Buying a property that is part of a chain means that the sale of each property is reliant on all the properties being sold. A break in the chain can happen for many different reasons, such as problems with the survey, finance problems or even out of malicious intent as a buyer (or developers) attempts to lever a lower price knowing they are an important link in the chain. Thankfully the latter is rare.
None-the-less, around 1 in 3 property chains falls through.
How to ensure your chain doesn't fall through
Unfortunately, there is little that can be done to stop a property chain breaking under the current home-buying and selling process.
If you are selling your home, ensure that your property and paperwork is in order before you find a buyer. This way the sale of your home is likely to have less hiccups.
Another way to minimise the risk is to ensure there is clear communication between all parties involved, via your solicitor or estate agent, so that all documents are exchanged quickly.
If there is a break in the chain due to a financial issue, then you could consider contacting the other vendors to club together and cover the costs of the shortfall to ensure the chain proceeds. Depending on the amount this could save money and lots of hassle in the long term.
Finally, if you are flexible with conditions put upon you, you can ensure the sale goes through. You may have to consider renting or staying with friends or family to fill the gap between selling your property and moving in to a new place.
Chain free properties
Most estate agents advertise the fact they have a chain free property for sale as these are much easier sales. Always ask if the property you are interested in is part of chain as it may affect your decision to make an offer if time is an issue.