Deposit Bond

Terms you should know:

A Deposit Bond is used in lieu of a cash deposit when the purchaser does not have the cash to pay as a deposit (such as they are borrowing 95 or 100% of the price) or for any reason that the purchaser does not want to pay a cash deposit. This could be that the purchaser is also selling a property and all their assets are tied up in their sale.

A deposit Bond is a guarantee that the 10% deposit will be available at settlement or to the Vendor if the purchaser defaults under the contract.

Deposit Bonds are becoming more common practice these days.
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