What is a Deposit Bond?
Construction Development Deposit Bond is a Surety Bond to act as a guarantee to investors so that their deposits/investments are safeguarded when buying or investing in developments or when buying properties off plan.
The deposited funds can be used by the developer against the construction of the development a charge over the development may be required by the Surety offering the deposit guarantees.
The Development Master Bond is usually sourced by the developer and schedules against that Bond offered to the investors as a guarantee of their investment on receipt of their deposit payment.
Our underwriters will be in a position to consider terms for your Construction Deposit Bond requirement, when we are in possession of the under-mentioned further information
Completed Deposit Bond Application form (downloadable on this page)
Applicant Company - Latest Accounts & Latest Management accounts
If applicant is an SPV then we would require their net worth. Usually this will be in the value of the development.
CV's for the directors
The name of the builders carrying out the development. Underwriters will need to approve them.
Plans of the site plus photographs if available.
Details of Planning permission
Evidence from where the funding is coming from and the terms of any mortgage.
As each request is underwritten on an individual basis, on receipt of these items our underwriters may be in a position to give a non-binding indication of terms.
This form of Surety Deposit Bond is not to be confused with Deposit Bonds for rental deposits or in lieu of cash deposit when purchasing a property.