What is a property chain?

A property chain refers to the series of buyers and sellers connected by their property transactions, where each individual is tied to the next through the property they are buying or selling.

The property chain typically starts with a first-time buyer or someone without a property to sell and ends with someone who is only selling, not buying another property. Everyone in between depends on those before and after them in the chain to keep all transactions moving forward smoothly.

How many people can be in a property chain?

It depends - there are no hard and fast rules on how many home buyers and sellers can be in any one property chain. It can be as little as two parties, for instance if a first-time buyer with nothing to sell is purchasing a property owned by a buy-to-let investor, who is not purchasing another property in its place.

Sometimes, it can be in the region of six-eight parties, with each party linked to another until the 'top' of the chain is reached, where a person is only selling their property, not purchasing another.

What does chain-free mean?

If a property listing includes terms like "chain-free" or "no upward chain," it means no additional parties are involved in the transaction—just you and the seller, and possibly your own buyer if you’re also selling a property.

This often occurs when the seller is buying a new-build directly from the developer or when they are selling a former buy-to-let property.

Chain-free purchases are generally the quickest and simplest transactions, as fewer parties are involved, reducing the potential obstacles for solicitors to address.

Why do property chains collapse?

Property chains can sometimes fall apart prior to the transactions completing, although this is rare in Scotland thanks to missives being concluded early in the process. However, with multiple parties involved and lots of details involved, sometimes things can go wrong, and property chains can collapse.

If a property chain collapses, this may delay your sale, as one of the links may need to find a new property to purchase, or pull out of the chain altogether. Although sometimes this cannot be avoided, the risks are reduced by using a reputable, experienced solicitor estate agent and by being as prompt, organised and efficient as you can - sign and send all paperwork when requested, follow your solicitor estate agent's advice and get your finances in place early.

What to do if a property chain collapses

To resolve a broken property chain, maintain open communication with all parties to identify issues and explore solutions. Consider renegotiating terms if specific problems arise, like survey findings or mortgage difficulties.

If necessary, seek alternative buyers or properties and consult your mortgage lender to explore financial options that might help keep the chain intact.

How to break a property chain

Breaking a property chain can reduce risks and help ease the transaction of a property sale. If sellers have multiple offers, they can break the property chain by accepting offers from a chain-free buyer or first-time buyers.

Other strategies at a seller’s disposal include only opting for chain-free properties when buying, selling before buying, renting temporary accommodation between buying and selling or buying a home outright with cash.