Deposit Bond

[WebBoard]

From: Anonymous


I am a new to the forum, & this is my first post.
I wish to buy a residential IP & I have heard
about Deposit Bonds being used instead of a
cash deposit, can anyone explain exactly what
they are, how they function & where you get
them ?

regards, TT

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi TT

A deposit bond is exactly that.

An insurance bond issued by an insurance company that will provide the vendor a guarantee of 10 % (usually) of the purchase price.

Most commonly used for off the plan purchases, but can also be used where you need to secure a property quickly but can not find the 10 % in cash.

Bond brokers.

Ta

Rolf

 

[WebBoard]

Reply: 1.1
From: Robert Longmore


how do you go about getting one? do you approach an insurance company? bank?

 

[Rolf Latham]

Reply: 1.1.1
From: Rolf Latham


Hi Robert

Many Insurers Do them. Easiest is a bond broker

Try www.uniteddb.com.au

Ta

Rolf