It is a common occurrence for purchasers to seek to provide a deposit bond in place of a cash deposit on the exchange of a contract for sale of land. When dealing with these situations there are a few pitfalls for agents to avoid. An example would be attending to exchange of the contracts with a deposit bond without the prior approval and authority from the Vendor. Agents need to make sure that they obtain this approval and that the front page of the contract reflects this, the 2014 contract for the sale of land includes a box referring to deposit bonds on the front page which will need to be ticked where a deposit bond is provided.
Please watch our short video on other pitfalls to be aware of.