Auction Deposit Bond
Buying at auction? At an auction, the winning bidder is typically required to pay 10% cash deposit to secure the property. If you do not have ready access to a cash deposit you can use an auction deposit bond to secure the property.
So we get it, you may be unsuccessful in your attempts to secure the property you want at auction. Therefore, we make it super easy for you and issue you with an auction deposit bond that can be re-used for multiple auctions and properties within the purchased timeframe until you are finally successful!
The auction bond is issued without the vendor’s names, the conveyancers details and the property address.
Once successful at auction, you just need to complete the basic information that you know, like:
✓ The final purchase price
✓ The property address
✓ The vendors full name
We strongly recommend you speak to the auctioneer, real estate agent or vendor’s legal representative before the auction to confirm they will accept a deposit bond in lieu of cash.
Below is an illustrative example how an auction bond works:
How long should I get the deposit bond for?
An auction deposit bond can be purchased for a 3 or 6 month term only. Unless you are super confident you are going to be successful on your first attempt at auction, our recommendation is that you acquire the auction bond for the 6 month terms.
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. A one off admin and processing fee of $200 will be charged to obtain a extension.
Ready to apply for an auction deposit bond?
Our deposit bond concierge team, will assess your situation and if a deposit bond is what you need, we will go ahead and take care of your application for you so you can focus on what you do best!
Our concierge officers, will guide you through the entire process, from start to finish.
Here’s how it works:
Yes, I would like you to apply for a deposit bond for me.
Other relevant links you may be interested in:
Want to work out the costs for an auction bond? Get an instant quote using our Fee Calculator.
Want to learn more about deposit bonds and how they work? Click here.
Learn more about our deposit bond concierge service.
Deposit Assure are an Agent of QBE Insurance (Australia) Limited ABN 003 191 035