Addisons can assist in organising a Deposit Bond for your next property purchase.
A Deposit Bond is a substitute for the 10% cash deposit that is required when purchasing a property. A Deposit Bond is a guarantee, to a vendor for the amount of the deposit required under a Contract of Sale. By using a Deposit Bond instead of cash, the amount of the deposit is retained by the purchaser until settlement. There is no need for the purchaser to withdraw the cash required from other investments or out of equity in other property assets, so their money is left working for them.
The cost of a Deposit Bond is cheaper than other financing alternatives and the process of applying is quick and simple. Using a Deposit Bond is a convenient and cost-effective way to exchange on a property. The guarantee is provided to the vendor on the understanding that the purchaser will pay the vendor the Deposit Bond amount on the settlement date of the contract.
When applying for a Deposit Bond, the purchaser will sign a counter indemnity agreement to confirm this. Under the counter indemnity agreement, the purchaser gives a legally binding right to QBE to pursue recovery against the purchaser for any part of the Deposit Bond amount that QBE pays the vendor, if the purchaser defaults under the contract of sale.
Addisons can issue various types of Deposit Bonds, depending on your needs. We can issue Deposit Bonds on most types of properties including residential properties, commercial properties and land. Deposit Bonds are ideal for ‘off the plan’ purchases. No matter your need – let us help.