A deposit bond can be used
- take to an Auction
- exchange a negotiated contract
- secure an off-the-plan purchase
A deposit bond is essentially a form of insurance. For an
initial premium paid to the insurer, the purchaser receives
a guarantee that can be offered to the property vendor in
lieu of a cash deposit. Whilst deposit bonds are widely accepted,
always check with the selling agent / vendor prior to an
auction or attending exchange.
The bond acts as a substitute for a cash deposit during
the period between the signing of a contract (exchange) and
the settlement of the purchase. At settlement, the purchaser
is required to pay the full purchase price to the vendor.
The use of a deposit bond does not remove the obligation
o the purchaser to pay the full deposit upon settlement.
The shortest term bonds are 3 to 6 months and cover the
usual 42 days/ 6 week settlement period on most contracts.
Longer bond contracts up to 48 months are available to cover
off-the-plan purchases or extended settlements.
Holistic Home Loans can quickly obtain quotations from various bond issuers
and arrange a bond prior to exchange. Please contact
Holistic Home Loans for more information.