Buying and selling property at the same time can be tricky, especially when your funds are tied up. Sydney resident Samantha found the answer.
When Samantha found her dream apartment in Erskineville in Sydney’s inner west, she still needed to wait for the funds from her house sale in Coogee before she could secure her new property with a 10% cash deposit.
“I saw the apartment on Saturday and loved it. It’s a one-bedroomed New York style loft apartment with a garden – a really great space,” Samantha recalls. “Unusually, the owner was selling it privately with no real estate agent involved.”
Samantha found herself in a silent bidding war with another interested buyer. With her offer finally accepted, she needed to find the deposit to secure the sale. The challenge was that her house sale hadn’t yet settled.
“I knew I had money coming through, but it just wasn’t quick enough to pay the 10% deposit.”
Because Samantha was buying outright using the proceeds of her house sale, she wasn’t taking out a mortgage. With no association with a bank, Samantha decided that using a personal loan for the deposit would be slow and stressful.
“I needed a deposit really quickly, and didn’t want to bring a bank into it if I didn’t have to. With only five working days, I would have missed out,” she explains.
A friend suggested that she use a deposit bond, which is a substitute for the cash deposit required between signing the contract of sale and settlement. Like a cash deposit, a deposit bond is used to guarantee the commitment of a buyer to the contract of sale. It’s also perfect for scenarios like Samantha’s, where you intend to buy and sell at the same time and your cash is tied up.
“I’d never heard of a deposit bond so I literally did an internet search to find out how they worked,” she says. “That’s when I found Deposit Assure.”
Deposit Assure’s bonds are underwritten by QBE Insurance, one of the most respected and recognised insurance companies in Australia. The process is simple: Deposit Assure can issue a bond so long as the buyer proves they will have the funds to complete their purchase at settlement, which Samantha could as her property was under contract.
“As soon as Deposit Assure was involved, it was all organised very quickly. Etienne helped with the paperwork, so everything was easy,” she says.
By 5pm on Friday, Samantha and the vendor were ready to exchange contracts – which took place in a pub!
“I really recommend deposit bonds in this situation, especially from Deposit Assure. The whole process was so straightforward, with one transparent fee and such personalised service,” Samantha adds.
Are you buying and selling?
Get in touch with our deposit bond concierge team. We’ll assess your situation and, if a deposit bond is what you need, we will take care of your application for you. Our concierge officers will guide you through the entire process from start to finish. Easy!
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