If you have insufficient funds (you may be borrowing the full price on the security of another property) or your funds are tied up, a Deposit Bond may be your answer.
A Deposit Bond is a guarantee usually from an Insurance Company guaranteeing the payment of the deposit in the event of default by the Purchaser.
A Deposit Bond is purchased by the Purchaser at a cost varying in relation to the amount of the Bond.
If you default, normally the Insurance Company will sue to recover the monies paid out under the Bond.
The Vendor may or may not agree to a Bond being used as the deposit.
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