What types of Exchange Bond^® are available?

There are three types of Exchange Bond^®.

Term Exchange Bond^®

The Term Exchange Bond^® is designed for use where the period between exchange of contracts and completion may be many months – or even several years. This is often the case with new build ‘off-plan’ purchases.

A Term Exchange Bond^® is very flexible:

• It saves paying the vendor a cash deposit at the time of exchange of contracts.
• It can be issued for periods of up to five years. The cost is based on the number of months.
• It can easily be extended by the buyer or seller if there are delays.
• It allows for differing deposit amounts (usually up to 10%).

Overseas Exchange Bond^®

An Overseas Exchange Bond^® is a special type of Term Exchange Bond^® that is used to purchase a property overseas.

• It avoids handing over large cash sums to an overseas developer before completion as part of a transaction which is subject to local laws.
• It avoids the worry of how to recover the deposit under foreign law if something goes wrong.
• From the property developer's point of view, it is both simpler and guarantees he will get the deposit amount if the buyer fails to complete the purchase.
• We work with a number of developers in several countries. See a list of some of the developments where Exchange Bond^® is accepted.

General Exchange Bond^®

The General Exchange Bond^® is used for the purchase of an existing property.

• It solves the problem of the deposit monies being tied up in the equity of the buyer's current home.
• It provides greater security in the home buying chain and helps protect against a collapse.
• Buyers do not have to rely on their savings or investments, or take out an expensive bridging loan for the cash deposit.