Deposit Power

About Deposit Power Home Loan Deposit Bonds

Deposit Power is a guarantee (also known as a deposit bond) issued by Vero Insurance Limited to the vendor. It acts as a substitute for the cash deposit between signing a contract and settlement of the property. At settlement the purchaser is required to pay the full purchase price including the deposit. The use of a Deposit Power Guarantee does not remove the obligation of the purchaser to pay the full deposit upon settlement.

The Deposit Power Guarantee can be issued for all or part of the deposit amount required, up to 10% of the purchase price. Acceptance of the Deposit Power Guarantee in lieu of a cash deposit is at the sole discretion of the vendor.

The Deposit Power products available include

• Short Term Guarantee- with an expiry date of 6 months
• Long Term Guarantee- for purchase contracts where the Sunset Clause is between 6 and to 36 months

Should the purchaser default under the contract of Sale/Offer and Acceptance, the vendor can claim the amount guaranteed from Vero Insurance Limited. Vero Insurance Limited will the seek to recover this amount from the purchaser.

Deposit Power was introduced into the Australian market by Vero Insurance Limited (formerly Royal & SunAlliance Insurance) in 1989 and is legally effective in all Australian States and Territories.