How claims are made

An Exchange Bond^® operates in a similar way to a documentary credit. To make a claim, the vendor (either indivial seller, corporate seller or home builder) simply provides evidence that the property is completed as provided for in the sale and purchase contract (for homebuilders this is often an NHBC certificate) and that the buyer has failed to complete as provided in the same contract.

This documentation together with the Exchange Bond^® certificate constitutes a valid claim.

For a Term Exchange Bond or Overseas Exchange Bond payment will be made by close of business on the third working day from the day of receipt of the above documentation.

For a General Exchange Bond (normally used for the purchase of existing property) payment will be made by close of business on the fifth working day from the day of receipt of the above documentation.

Information pack for legal professionals

Register here for the legal advisor panel. We will send you a detailed briefing on the Exchange Bond^® and how if affects the sale and purchase contract.