A Deposit Bond is used in lieu of cash for a deposit on the purchase of a property. The bond gives the Vendor security that can be converted to cash in the event that the purchaser does not proceed with settlement of the property.
The Deposit Bond is NOT an insurance policy; it is a form of Surety or Guarantee. The purchaser indemnifies the Underwriter by way of an Indemnity.
For a premium, a bond can be purchased for periods from 6 weeks to 5 years, depending on the settlement term of the property. The cash that would normally be used for a deposit can be invested until settlement arrives.
Many purchasers buy properties "off the plan" or that are under construction and completion of the property can be months or even years away. The Deposit Bond ensures the purchaser secures the property without the outlay of a 10% cash deposit until the property is ready to settle.
Where the purchaser is an individual, we are able to offer Commercial Deposit Bonds subject to satisfactory credit assessments. If you are interested in a residential deposit bond please Click here to enter the Deposit Underwriters Website.'
For commercial purchasers please click here to download an application form for a Commercial Deposit Bond.