How does it work – for buyers?
A Deposit Guarantee can often simplify the process of buying a property. For purchasers it provides a quick and convenient way of accessing a deposit without having to arrange other time consuming and expensive options such as bridging loans, the sale of shares or an equity release from existing property.
The deposit guarantee simply takes the place of the cash deposit required in the contract. A guarantee certificate is produced which is held by the sellers’ representative until settlement (usually their solicitor or conveyancers).
At settlement the purchaser simply pays the full purchase price including the deposit amount at which point the guarantee becomes void.
The process for purchasers differs slightly depending on whether you’re intending to buy at auction or make an offer on a property; private treaty.
Deposit Guarantees are available to any person living and residing permanently in Australia; this includes individuals, first homebuyers, retirees, self-employed, trusts, corporate entities or SMSF purchasing residential or commercial real estate.