The Deposit Guarantee legal indemnity insurance policy provides cover when a buyer is not able to raise the deposit that is required to be paid at exchange of contracts for the purchase of a residential property based within England and Wales. This might be because:
- the buyer is obtaining a mortgage advance of 100% of the purchase price
- the buyer's deposit is invested and requires notice of withdrawal
- the buyer would otherwise have to borrow the deposit
- funds cannot be released until the buyer completes the sale of a property
This policy protects the seller of the property in the event that the buyer fails to complete the purchase and is bound by the sale contract to forfeit the deposit.
The completion date in the sale contract must not be more than 10 weeks after the date on which contracts are exchanged.
Click here to download our Demands & Needs statement
Full Key Facts can be viewed by clicking here.
Key Features and Benefits
If the buyer of the property fails to complete the purchase and is bound under the terms of the sale contract to forfeit the deposit, the policy provides cover for the following, up to your selected the limit of indemnity *:
- the sum, not exceeding 10% of the purchase price, that the buyer is bound to forfeit to the seller by way of deposit
- any other costs and expenses with our consent.
The policy remains in force for as long as the contract for the sale of the property to the buyer is not completed.