Expiry of Deposit Bond

[buzzlightyear]

I have a likely scenario where the property which is being built for me, is now likely to be complete a couple of months after the expiry of the deposit bond.

I understand that they can be extended, but just wanting to confirm, what would be the implications if it wasn't.

 

[JoannaK]

Hi Buzz,

You'll need to extend the deposit bond. If you don't, and the deposit bond expires prior to settlement, effectively there is no deposit paid therefore you would be in breach of the contract as far as I know. In that situation you'd probably have to come up with the cash to replace the bond.