A chain, when used in reference to the process of buying or selling a house, is a sequence of linked house purchases, each of which is dependent on the preceding and succeeding purchase. The term is commonly used in the UK. It is an example of a

vacancy chain A vacancy chain is a social structure through which resources are distributed to consumers. In a vacancy chain, a new resource unit that arrives into a population is taken by the first individual in line, who then leaves their old unit behind, this ...

. Each member of the chain is a house sale, which depends both upon the buyers receiving the money from selling their houses and on the sellers successfully buying the houses that they intend to move into. Where no chain exists, it is called a

chain-free property A chain-free property is a property that is being sold by a vendor (home seller) who does not need to purchase a new property after they sell. Only 10% of all property transactions in the United Kingdom are chain-free. Origins of the term The ter ...

but only 10% of property transactions in the United Kingdom have no chain. For example, in a four-household chain, A buys B's house, B uses the money from that sale to buy C's house, and C uses the money from that sale to buy D's house. (A chain can be circular. This example becomes circular if D buys A's house.) All sales in a chain

close Close may refer to: Music * ''Close'' (Kim Wilde album), 1988 * ''Close'' (Marvin Sapp album), 2017 * ''Close'' (Sean Bonniwell album), 1969 * "Close" (Sub Focus song), 2014 * "Close" (Nick Jonas song), 2016 * "Close" (Rae Sremmurd song), 201 ...

on the same day. On that day, all the households involved in the chain leave their former homes and move to their new homes. This situation is notorious for being liable to "break" if one of the transactions fails, for example due to financial difficulties, a change of heart, or the practice of

gazumping Gazumping occurs when a seller (especially of property) accepts a verbal offer (a promise to purchase) on the property from one potential buyer, but then accepts a higher offer from someone else. It can also refer to the seller raising the asking ...

gazundering Gazumping occurs when a seller (especially of property) accepts a verbal offer (a promise to purchase) on the property from one potential buyer, but then accepts a higher offer from someone else. It can also refer to the seller raising the asking ...

. The failure of one member of the chain fouls the whole set of transactions. The remaining chain fragments must find new buyers and sellers to form new chains. A chain begins with a household buying a house without selling their current house. Examples: *A household that does not currently own a house. This may be a

first time buyer A first-time buyer (FTB) is a term used in the British, Irish, Canada property markets, and in other countries, for a potential house buyer who has not previously owned a property. A first-time buyer is usually desirable to a seller as they do no ...

, such as a household moving out of

rent Rent may refer to: Economics *Renting, an agreement where a payment is made for the temporary use of a good, service or property *Economic rent, any payment in excess of the cost of production *Rent-seeking, attempting to increase one's share of e ...

ed accommodation. It may also be the result of a household splitting, for example a grown child leaving home. *A household retaining ownership of their old house after moving out. For example, they may wish to rent it out, demolish it, or merely leave it vacant and keep it on the market. A chain ends with a house being sold and not depending on existing owners buying a house to move into. Examples: *A household moving into a vacant house. It may be a newly built house or a house rendered vacant due to the death of its occupant or occupants or the departure of former tenants. *A household moving to join an existing household. *A household moving to temporary accommodation until they can buy a new house. *A household moving into

ed accommodation or a

nursing home A nursing home is a facility for the residential care of elderly or disabled people. Nursing homes may also be referred to as skilled nursing facility (SNF) or long-term care facilities. Often, these terms have slightly different meanings to in ...

References

{{Reflist Real estate terminology

See also

References