A Deposit Guarantee is a secure financial guarantee that replaces the cash deposit required between signing a sale agreement and the payment of a purchase price of a property.

Upon transfer, the buyer is required to pay the full purchase price including the deposit. The use of a Deposit Guarantee does not remove the obligation of the buyer to pay the full deposit upon transfer.

The Deposit Guarantee can be issued for all or part of the deposit amount required. Acceptance of the Deposit Guarantee in lieu of a cash deposit is at the sole discretion of the seller.

Deposit Guarantees are issued to the seller of a property by Lombard Insurance Company Limited, a member of the Hollard Group of Companies.

Deposit Guarantees are available for 3 to 36 months.

Important: Should the buyer default under the sale agreement, the seller can claim the amount guaranteed from Lombard Insurance Company Limited. Lombard Insurance Company Limited will then seek to recover this amount from the buyer.