Deposit Power Guarantees

Topline Conveyancing are agents for Deposit Power, which is underwritten by Vero Insurance. This means that we can process applications for Deposit Power Guarantees in our office, and approval of such application by Vero normally issues within one hour.  The original Guarantee is then usually received in our office within 24 hours of approval.

What is a Deposit Power Guarantee?
A Deposit Power Guarantee substitutes for a cash deposit between signing contracts and settlement. It can be used for all or part of the deposit required, up to a maximum of 10% of the purchase price.

At settlement you, the purchaser, are required to pay the full purchase price including the deposit. The use of the Deposit Power Guarantee does not remove your obligation to pay the full deposit at settlement. If you default under the contract for the purchase, but are still required to pay the deposit, then the seller can claim the amount from Vero Insurance who will then recover the money from you.

Can I use a Deposit Power Guarantee at an Auction?
Yes, a Deposit Power Guarantee can be issued prior to your attending an auction. The settled amount on the guarantee is fixed, but not the property details, so you can attend a number of auctions. When you are the successful bidder, you simply complete the seller and property details on the Guarantee.

What does a Deposit Power Guarantee cost?
The fee is 1.2% of the guaranteed amount for amounts up to $100,000 and includes all charges and stamp duty. For example a $40,000 Power Bond will cost you $480.00.

What do I need to obtain a Deposit Power Guarantee ?
You need to provide us with copies of your written loan approval, your exchanged Contract for Sale (if you are selling), evidence of availability of funds to make up the purchase price and payment for the Guarantee.

If I am a seller, how can a Deposit Power Guarantee help me sell my home?
Sometimes people selling one home and purchasing another have trouble raising the deposit when their funds are tied up in their home. The cost of using a Deposit Guarantee is minimal, saving the use of bridging finance. If your purchasers are obtaining 95% finance then this enables you to achieve a full 10% deposit commitment which protects you up to settlement.