What Does No Onward Chain Mean When You Are Selling A House?
If you’re working to sell your home, you may have seen the term “no onward chain” listed in real estate blogs and other information. Understanding the term “onward chain” is an absolute must when you’re working to sell your home. What does no onward chain mean? Should you only consider properties without an onward chain? Keep reading to learn more.
A Property Chain is The Big Problem
What does no onward chain mean in property sales? Throughout the UK, most property sales are part of a chain. That means the sale of one property relies on the completion of another property sale. An example might help. Imagine you own House A. You’ve listed it for sale, and you’re hoping for a buyer soon. As you wait for a buyer, you come across House B. You’re ready to buy, and you’ll use the proceeds from House A to buy House B, as soon as House A sells. You’ve just created a property chain. If the sale on your house falls through, you can’t buy House B. If the people who own House B place a bid on House C that’s contingent on your piece, you have yet another problem. Understanding the no onward chain property meaning might help you understand just how this problem can be solved.
No Onward Chain Meaning
What does no onward chain mean when buying a house? If you see the term “No Onward Chain,” the meaning is simply that the person who is selling the property isn’t buying another one with the funds from that sale. What does no onward chain mean? The property is literally ready to be sold immediately. The seller doesn’t have to hold things up to find another place to move or wait on a loan from a mortgage company. It’s a way of offering both the seller and the buyer some peace of mind.
“No Onward Chain” House and Property Options for Sale With This Term Attached
Understanding “What is no onward chain” means understanding the kinds of properties with this type of term attached to the marketing. While almost any home can have no onward chain, there are a few things that make it fairly common. For example, a property that has been inherited typically has the term “Sold with No Onward Chain” attached to it. Similarly, a landlord looking to sell his property that was previously rented to tenants usually has no onward chain. If an older person is moving into assisted care, there’s typically no onward chain either.
Is There a Difference Between what No Chain and No Onward Chain Means??
You may see both terms used – no onward chain and no chain – in property sales marketing. Is there really a difference between “No Chain” and the meaning of “No Onward Chain”? Absolutely. The no onward chain meaning is that if you have a property advertised that way, the property chain ends with that sale alone. If the property is chain free, that means that not only is the seller not moving into a property they must purchase with the proceeds, but the buyer isn’t using the proceeds of the sale on their home either. No one involved is relying on the sale of other property to make the real estate transaction work.
Are Sales with No Onward Chain Safer?
Those sales with no onward chain may still fall through. After all, no sale is completely safe until completion day has been reached. Sales with no onward chain might fail because the conveyancing process is delayed, the buyer can’t get the loan he or she needs to move forward, one party changes their mind, or the survey comes back with serious structural issues in the property.
Despite that fact, no onward chain is quite helpful both for the buyer and the seller. For the buyer, it means a faster, less risky sale. For the seller, it means a more attractive property that can move incredibly quickly.
Work with GoodMove and Eliminate the Property Chain Entirely
Property chains are a hassle for everyone involved. Understanding the answer to “what does no onward chain mean” and how you can prevent them is key. If you’re looking to sell your home, you can eliminate the problem entirely by working with a company like GoodMove. We offer fast cash sales to home sellers just like you every day. Learn more when you contact us today.