In the case of chain transactions, delay in completion assumes significance. Thus, if sale is not completed in one transaction, he may not have the money (from the proceeds of sale) to pay for another transaction with which this sale was synchronized.
The seller may have to face breach of contract charges for no fault of his. Under such circumstances, it is the job of the conveyancing solicitor to ensure that breach of contract does not occur. This is usually done by arranging for a bridging loan. But the conveyancing solicitor is duty-bound to protect the interests of his client and a bridging loan may not always be the best course of action. For instance, in the example given above, if the client goes for bridging loan, he not only ends up incurring a heavy rate of interest, but also may end up owning two houses, until the sale is effected. And if the sale does not take place in time, a huge strain is caused on the client’s finances.
Conversely, when the sale goes as planned, but the purchase is delayed, the client faces the problem of being homeless unless the purchase deal goes through. He may have to arrange and pay for storage of furniture and also arrange accommodation for himself.
Photo courtesy: Gwydion M. Williams
