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Q. DO I STILL HAVE TO
PAY MY DEPOSIT AT SETTLEMENT?
Yes! You have to pay the vendor the full purchase
price when it comes time to settle on the property.
The bond simply delays the payment of the 10% deposit
so now you only have to make one payment at the
time your ready to take possession of the property.
If you are purchasing off the plan, settlement
could be a year or two down the track. By using
a deposit bond your real deposit money can stay
with you and earn interest or dividends.
Q. WHAT IF I DEFAULT ON
THE PURCHASE?
If you default on the purchase of the property
and are liable to forfeit the deposit, the person
holding the deposit bond will be entitled to receive
payment of the 10% deposit from the insurer who
will then recover the money from you under the
Counter Indemnity Agreement.
Q. DO VENDORS LIKE
DEPOSIT BONDS?
Yes! Once the vendor accepts the bond he/she knows
the deposit amount will be paid at settlement if
the purchaser fails to settle the property.
Q. ARE DEPOSIT BONDS
WIDELY ACCEPTED?
Yes! DEPOSIT ACCESS deposit bonds arranged
through Money Street are readily acceptable by
vendors throughout Australia.
NOTE: Deposit provisions can vary from state
to state. Where deposit provisions need amendment,
buyers outside NSW should ask their solicitor
or agent to ensure the special condition on the
reverse of the guarantee is inserted or annexed
to the Contract of Sale.
Q. HOW LONG IS A DEPOSIT
BOND VALID?
A deposit bond can be issued for periods of 6,9,12,15,18,21,24,27,30,36,42
and 48 months and can be extended, if necessary,
by Money Street for an additional
premium.
Q. WHAT IS A COUNTER INDEMNITY
AGREEMENT?
A deposit bond arranged through Money Street will
be issued by DEPOSIT ACCESS to the vendor on the
basis that you will pay the vendor the bond amount
on the settlement date of the contract.
The vendor can claim the amount specified in the
bond from DEPOSIT ACCESS, and request that it be
paid to the deposit holder. The Counter Indemnity
Agreement you complete and sign in the application
form gives DEPOSIT ACCESS the right to recover
this amount from you should you default.
Q. WHEN DOES THE BOND TERMINATE?
The bond terminates on the expiry date, or when
the Contract of Sale is completed, terminated or
rescinded.
If you fail to complete the contract, and the vendor
becomes entitled to terminate the contract, the
bond terminates when a claim is paid to the deposit
holder at the request of the vendor.
Q. CAN I BUY A PROPERTY
AT AUCTION?
Yes! You can arrange with Money St to obtain a
deposit bond before attending an auction. You must
have your finance fully approved before the bond
can be issued. Once issued you can then attend
a number of sales, knowing the maximum deposit
amount available to you.
Once you have successfully bid for a property,
simply complete the vendor and property details
on the bond. You must advise Money St, of the details
of the property and the amount required for the
deposit bond within 48 hours of purchase.
Q. CAN I GET A REFUND?
Once a deposit bond is used (exchanged on) to secure
a property no refunds are available. However, for
bonds that are issued but unused (not exchanged
on) Money Street will refund the unused portion
of the bond less the handling fee if the original
bond is returned to our office within 60 days.
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