What is a Deposit Guarantee?
A Deposit Power Deposit Guarantee acts as a substitute for the cash deposit required by the purchaser between signing a contract of sale and settlement on a property. It acts as a guarantee of the deposit payment. At settlement the purchaser simply pays the full purchase price including the deposit.
Deposit Guarantees can sometimes be referred to as a Deposit Bond.
Deposit Guarantees are widely accepted and trusted throughout Australia as a means of securing a property purchase. In fact, Deposit Power has helped over 750,000 Australian’s purchase property. Deposit guarantees are legal in every state and territory across Australia.
A Deposit Guarantee can be issued for all or part of the deposit amount required, up to 10% of the purchase price.
We understand that depending on negotiations between purchaser and vendor deposit amounts can vary anywhere between 1% up to 10% of the property purchase price. We also know that at other times a purchaser may want to split their deposit between cash and a Deposit Guarantee. Deposit Power Deposit Guarantees are designed with this flexibility in mind.
Deposit Power Deposit Guarantees can be issued to purchase most types of properties with settlement terms to match the needs of the purchaser. Most properties (registered properties) settle within 6 months or sooner but there are many other situations that require a longer settlement term, up to 48 months; for unregistered properties, vacant land, properties-under-construction and off-the-plan purchases.
There are two types of Deposit Guarantees available based on the settlement term:
Short Term Deposit Guarantee – for settlement terms up to 6 months
Long Term Deposit Guarantees – for settlement terms between 6 and 48 months