Deposit Bonds

A financial guarantee issued by an insurance company/underwriter to the vendor. It acts as a substitute for the cash deposit paid between signing a contract and settlement of the property. At settlement the purchaser is required to pay the full purchase price including the deposit.

The use of a Deposit Bond does not remove the obligation of the purchaser to pay the full deposit upon settlement.

The Deposit Bond can be issued for all or part of the deposit amount required, up to 10% of the purchase price. Acceptance of the Deposit Bond in lieu of a cash deposit is at the sole discretion of the vendor.