Property chain refers to the situation in which buyers and sellers are involved and the sale of the property is successful. The main goal here is that all purchases proceed in an interconnected way. Real estate agents, pollsters, and legal advisers are involved in the process of building this chain in between. There may be a possibility that the process may be disrupted by the buyer or seller, or the chain may be broken for other reasons. Therefore, all conditions must be provided before making this investment. So, what stages does the property chain consist of, and what are the challenges encountered?
What is Property Chain?
A property chain is a process by which several buyers and sellers buy each other's properties. It is important to note that the first person in the chain supply is only the buyer, and the last person in the process is the seller only. If you are not going to buy a new property, there may be a minimum of two people on the property chain. The maximum number depends on the people involved in the process. However, the more people involved in the process, the longer it takes to complete the sales process.
What are the Main Challenges Faced during Property Chain Operations?
First, those involved in the process may want to leave the property chain process. Due to sudden accidents, bankruptcies, and problems with the mortgage process, the person leaves the operation. At this stage, negative reporting by researchers (surveyors and legal consultants) may disrupt the process. Another problem is that buyers and sellers change their offerings. The seller may give up the sale after receiving a higher bid from elsewhere at the last minute, or the person who wants to buy the house can reduce their offer at the last minute. In addition, most mortgages offer 3- and 6-months duration, and if the sale doesn't happen, you may need to make a new deal with the mortgage. In the meantime, carrying fees and house survey money could be wasted, which you paid in the process.
How can Property Chain Processes be Controlled?
First, you must make a mortgage agreement in principle. The buyer or seller may want to see secured mortgage documents. A contract can be prepared for the offer and sale. An agency can be set up, and legal investigations begin. Legal research means value research, location research, and property research. If you handle all these processes quickly and easily, the investment of the property chain can be completed easily, so it is worth having strong interpersonal communication.
You can contact Trem Global, which provides services to you with its wide range of investment portfolios and investment consultancy. Moreover, you can get detailed information about property chain processes through our experienced team.