Banks and lenders provide deposit bonds as a guarantor that the full payment will be made by the due date. Deposit bonds are used when cash is not readily available for the deposit.
Guarantees the purchaser of a property will pay the full deposit by the due date. Institutions provide deposit bonds and act as guarantors, providing surety often when cash is not readily available
Guarantees that the purchaser of a property will pay the full deposit by the due date. Institutions providing deposit bonds act as a guarantor that payment will be made.
In place of putting a cash deposit down to secure a property, the purchaser can seek an insurer to guarantee the settlement on the property. The insurer will seek a premium to do this. In the event the potential purchaser cannot settle on the property, the insurer has the liability for any losses incurred through this transaction and will seek to recoup it through the original purchaser who defaulted. Deposit bonds are usually used for purchases of "off the plan units" and can be issued for periods of a few months to a few years.
Guarantees the purchaser of a property will pay the full deposit by the due date. Institutions providing such bonds act as guarantor that payment will be made. They are often used as a surety when cash isn't available at short notice.
A deposit bond is a written guarantee that substitutes the 10% cash deposit traditionally required to purchase a property. Applicants can apply for a deposit bond and if you are approved you will be required to pay a premium (fee) for the bond. The deposit bond premium is a one off fee that replaces your 10% deposit and secures the property until settlement.