Application details

Short Term Guarantee vs Long Term Guarantee

Generally, the type of property that will fall into the Long Term Guarantee category will be known as off the plan.

The completion date is the key indicator in determining if a Deposit Power Guarantee is either a Short Term Guarantee or Long Term Guarantee. The completion date is taken to be the date stated in the contract as:

  • The date at which settlement of the purchase is to be completed, or
  • The registration date of the strata or deposited plan, which is commonly referred to as the sunset clause
If a completion date is greater than 6 months from the application date, then the Guarantee will be assessed as Long Term.

Vero Insurance Limited will only provide a Long Term Guarantee for a maximum of 48 month term. A Long Term Guarantee may however be provided where the completion date exceeds this time-frame on the basis that the vendor acknowledges that the Guarantee will expire on the stated expiry date, with no automatic right of renewal.

Counter Indemnity

The Counter Indemnity Form that accompanies the Application Form for both the Short Term and Long Term Guarantee gives Vero Insurance Limited (the Guarantor) the right to recover the deposit amount guaranteed from the purchaser should the purchaser default under the Contract of Sale of Land.