Auctions are a popular way of marketing a property for sale.
If you plan on using a Deposit Guarantee at auction, you will need to apply for it prior to the auction. On the day of the auction, bring the Deposit Guarantee certificate along to the auction. When you secure the winning bid, simply complete the details of the purchase on the Deposit Guarantee certificate & hand it over to the real estate agent (instead of a cash deposit) to secure the property.
Often buyers might have to attend and bid at a few auctions before being successful. Rest assured that if you are unsuccessful at the first auction, you can use the Deposit Guarantee certificate at the next auction and hopefully, you will be the successful bidder then!
If you have found a property to buy and the seller has agreed on the price, you will have to sign a copy of the contract of sale (or offer & acceptance) and place a deposit (usually up to 10% of the property purchase price) with the real estate agent.
At this time, you simply apply for a Deposit Guarantee. The application process is quick and easy and you will get a response immediately when you apply online. All you need to do is hand over the Deposit Guarantee certificate (instead of the cash deposit) to secure the property.
Prior to settlement (the ownership changing names to yours), your legal representative will advise the amount you need to pay to the seller. At this point, you will have to pay the full purchase price, including the deposit amount. Your legal representative will give you a detailed itemised break down of the costs involved.