The Deposit Bond - Sample
At the request of [Name of Purchaser] (the purchaser)
and in consideration of [Name of Vendor] (the Vendor) accepting
this undertaking in respect of the Contract of Sale between the
Vendor(s) and Purchaser(s) for the property at [Full Address of
Property], for a full purchase price of (Purchase price in words
and figures) QBE Insurance (Australia) Limited ABN 18 090 935
765("the Financial Institution") undertakes to pay on
demand, subject to the conditions set our below, any sum or sums
which may be demanded by the Vendor to a maximum aggregate sum
of [Bond Amount in Words and Figures] (The Bond Amount).
The Financial Institution will make payment, should
it receive from the Vendor:
- a copy of a notice of termination or recision of the
Contract of Sale served by the Vendor on the Purchaser entitling
the Vendor to recover the Deposit in accordance with the terms
and conditions of the Contract of Sale and
- a statement in writing that the Deposit has not been
paid to the Vendor by the Purchaser in accordance with the terms
of the Contract of Sale and
- a written demand for the outstanding amount
It is agreed that the Financial Institution will
make payment or payments to the Vendor forthwith without reference
to the Purchaser and notwithstanding any notice given by the Purchaser
not to pay same.
This undertaking is to continue until:
- the Contract of Sale being completed or
- the expiry date detailed below or
- the Contract of Sale being terminated or rescinded and
the purchaser is entitled to a refund of the deposit or
- payment to the Vendor by the Financial Institution of
the whole of the sum or such part as the Vendor may require.
This Bond expires at 4.00pm on the ______the Day
of ______________200[ ](The Expiry Date).
Signed on behalf of QBE Insurance (Australia) Limited
by its authorised agent Deposit Underwriters Pty Ltd
Dated at Sydney this [ ] day of [ ], 200[ ]
………………………………
Guy Stening
Managing Director
Deposit Underwriters Pty Ltd
