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Deposit Bond Application Form

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IMPORTANT
This Deposit Bond Application relies on the information provided by the Applicant in your loan application. All Applicants and guarantors noted in your loan application are Applicants and Guarantors for the Deposit Bond Application.


What is a deposit bond?
A Deposit Bond is a bond or guarantee that acts as a substitute for a cash deposit between signing contracts and settling on a property. The bond guarantees that payment of all or part of the deposit will be made at the time of settlement and the value is capped at maximum 10% of the purchase price of the property. The insurer issues the Bond to the Vendor for all or part of the deposit required (up to a maximum of 10% of the purchase price)

At settlement the purchaser is required to pay the full purchase price including the deposit. If you default under the Contract of Sale and are required to forfeit the deposit, the Vendor can claim the Bond amount from the insurers. The insurer will then recover the money from the Purchaser

PLEASE NOTE:

If applicants decide not to proceed with the Contract of Sale, which the Deposit Bond was issued for and the Deposit Bond remains unused and is returned within 30 days from the date of issue, we will refund the bond fee, less our issue fee.

If the Deposit Bond is issued as an ‘open bond’ (for auctions), there’s no refund and the bond remains valid to be used up to the Expiry Date noted on the deposit bond. The deposit bond can be extended, if the settlement date goes beyond the Expiry Date on the Deposit Bond.

If the deposit bond has been issued for a long-term settlement (‘off the plan’ purchases), so long as greater than 6 months, we will pro-rata refund the unexpired period from the actual Settlement Date of the underlying Contract of Sale to the Expiry Date noted on the Deposit Bond, up to a maximum value of 18 months*. To claim the refund, we must receive (a) written proof of the actual settlement; (b) the ‘original’ Deposit Bond; and (c) within 45 days of the Settlement Date. A handling fee of $220 applies. The refund policy only applies if the purchaser(s) noted on the original Deposit Bond settles and take ownership of the noted property. The refund policy doesn’t apply if the property is on-sold during the construction period. (*Example A, if the property settles 4 months before the Expiry Date on the Deposit Bond, there’s no refund. Example B, if we issue a Deposit Bond for 48 months and the project completes and settles at say 26 months, then the refund will be based on a maximum of 18 months and not the 22 months remaining.)

If the above Refund Policy isn’t clear or your situation is different to that outlined, you must seek clarification from us, in writing, before you submit this application and we proceed to issue the Deposit Bond. Variations can’t take place once the Deposit Bond has been issued.



All fields marked with an asterisk (*) are required.
User Details: (We request this information now in case your online application is interrupted for any reason. You are then free to return to this application via a secure login)


I/We have read and understood the Indemnity Terms
I/We have read and understood the Applicant/s Statement
I/We have read and understood the Privacy Statement
I/We irrevocably authorise QBE Insurance (Australia) Limited ABN 78 003 191 035 (QBE) to serve the Applicant’s solicitor if service cannot be effected on me/us.


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**Please note. Once you click ‘Proceed’, you’ll receive an email with a Username and Password. You can use this combination to return to your Online Application within 60 days should you not fully complete the application now. You’ll also need the combination to log back in and upload various support documents that we require as part of your Deposit Bond Application. Should you misplace the email with your log in details, call 1300 851 351 during Sydney business hours.**