Deposit Bonds are used in place of the cash deposit the purchaser needs to pay when they sign a contract of sale. It acts as a guarantee of the deposit payment. At settlement, the purchaser simply pays the full purchase price including the deposit.
Deposit Bonds are also known as Deposit Guarantee.
Deposit Bonds can be issued to purchase most types of properties with settlement terms to match the needs of the purchaser. Most property purchases settle within 6 months or sooner but there are many other situations that require a longer settlement term, such as properties under construction and off-the-plan purchases.
