Q Can I use the Deposit Power Guarantee at auctions?
A Yes. A Short Term Deposit Deposit Power Guarantee can be issued prior to you attending an auction. The Deposit Power Guarantee amount is fixed, but not the property details, so you can attend a number of auctions. You simply complete the vendor and property details on the Deposit Power Guarantee Certificate when you are the successful bidder.
Q Will the vendor accept the Deposit Power Guarantee?
A The Deposit Power Guarantee is legal and available throughout all states and territories in Australia. It is at the discretion of the vendor whether to accept a Deposit Power Deposit Power Guarantee in lieu of a cash deposit. However, the vendor is often keen to obtain a contract of sale on the property and secure a deposit commitment from the purchaser. The Deposit Power Guarantee can usually be organised within 24 hours.
It is recommended that a Suggested Special Condition is inserted or annexed to the Contract of Sale. This condition will amend the deposit provisions and allow the Deposit Power Guarantee to be used.
Q When does the Deposit Power Guarantee expire or terminate?
A The Deposit Power Guarantee ceases when the Contract of Sale is completed, terminated or rescinded or when the expiry date on the Deposit Power Guarantee occurs, whichever happens first. The Deposit Power Guarantee also terminates when a claim is paid by Vero, the guarantor.
Q Can I obtain a refund if I don’t use the Deposit Power Guarantee?
A Yes. If you return the unused, original Deposit Power Guarantee Certificate within 30 days of issue the fee will be partially refunded. An administration fee will be deducted and the balance will be refunded to you.
Q What do I need to do to apply?
A To apply, you just need to complete an application form and show us that you have sufficient funds to complete the purchase at settlement. Examples include:
- A loan approval
- A copy of the Contract for property sold that will assist in the purchase of the new property
- Funds accessible prior to the completion date, such as savings, a fixed term deposit, or share certificates
- Evidence of other funds that will assist in the purchase such as the First HomeOwners Grant.