Last minute issues with chains
Can you use your buyer’s money for your deposit?
Normally you find yourself as part of a chain of property deals. All these linked transactions need careful co-ordination so that, when the time comes, contracts can be exchanged simultaneously – which, given all the obstacles to success, is something of a minor miracle.
In most cases it should be possible to utilise the deposit money due from your purchaser towards the deposit that you’re due to pay on the property you’re buying. However some solicitors are not keen on such arrangements, so it should be verified in advance in case an alternative source of funds is needed at the critical moment.
Agreeing completion dates
Chains sometimes collapse because somehow a mutually acceptable completion date just cannot be agreed. There are some things you can do to help prevent such a problem arising:
* Provisionally agree your completion date as early as possible (but at the same time you need maintain some flexibility in case of delays with mortgages etc, so this is not ‘set in stone’, and you shouldn’t book removals and time off work).
* Although completion often takes place a couple of weeks after exchange, it can be any time you agree. It can even be done simultaneously at the time of exchange, although this is not usually advisable unless you’re ‘chain free’ (because there’s nothing to stop the other side pulling out at the last minute, which can cause immense problems with aborted removals and mortgages). Sometimes a longer period of a month or more will suit everyone better.
* Consider moving into rented ‘holiday accommodation’. It may mean moving home twice but that’s still cheaper than paying abortive fees and starting all over again. You may even be able to get a contribution towards the costs if it makes the whole chain work.
Our next blog – coming soon …….
More last minute issues – with leaseholds
Check out our Rightsurvey blog page for more industry tips and secrets written by property professionals to help put you in control.