These Bonds are normally used when the purchase of Property is Concerned. As the Property is being built off plan, the Purchasers may be required to provide Deposits for a single Property or for many to the Developer. This can hinder the Cash Flow and therefore a Bond could be a suitable solution to ease Cash Flow.

We can confirm that where we consider the Market lies with Deposit Guarantee Bonds:

Property Developers and Estate Agents.

Deposits range from 10% – 30% of Sale Price of House or Flat.

The Deposit Protection Scheme is raising a great deal of interest. Whereby Developers are building New Builds and then selling from either Show Homes On Site or via Agents. We find that in some cases people are buying anything up to 10 Properties at one time.

Deposits are therefore requested and in order to give comfort to the proposed Purchaser, having a Deposit Protection Guarantee is of extreme comfort to their Clients. We have found that Deposits range from 10% of the Purchase Price up to 30% of the Purchase Price, therefore if the Developer has been building for example 100 Properties, the Bond requirement is in the Millions.

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