Introduction for legal advisors

A quick summary:

• An Exchange Bond^® is an alternative to making a cash deposit to secure a property.
• An Exchange Bond^® is a financial guarantee. It guarantees the full deposit amount to the vendor if the buyer fails to complete the transaction having exchanged contracts.
• The buyer remains liable for the deposit if he/she fails to complete, but the debt is owed to The Exchange Insurance Company and not the vendor.
• The buyer pays a premium to The Exchange Insurance Company for issuing an Exchange Bond^®. The beneficiary of the bond – if the buyer fails to complete – is the vendor.
• Using an Exchange Bond^® means that your client is able to either avoid expensive borrowing or retain existing assets and investments.

Where your client wishes to accept or use an Exchange Bond^® instead of cash for the exchange there may be a need to amend the sale and purchase contracts to allow for this. We have available a pro-forma amendment to the Law Society standard sale and purchase contract.

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.