A deposit bond is a written guarantee which can cover a buying party for the deposit on the purchase of a property. Deposit bonds are alternatives to cash deposits. The purchase price is still paid on settlement by normal means (i.e. cash or loan).

Deposit bonds are typically used when a party is borrowing 100% of their funds, such as:

  • Buyers waiting on funds to be released from another financial transaction, such as the sale of another property
  • Buyers who have not saved a cash deposit, yet are eligible for a loan
  • Buyers who are using a family guarantor
  • Buyers utilising the equity in another property
  • For any reason, a party does not have funds until settlement

They can be issued for up to 10% of the purchase price (i.e. $50,000 if the property price is $500,000).

It is possible to utilise a deposit bond for many types of property transactions, predominantly:

  • Residential
  • Investments
  • Off-the-plan purchases
Wills | fixed fee conveyancing
Deposit Bonds

Deposit bonds may also be used in the more rare property transactions, such as buying businesses or retirement villages. Deposit bonds can be compatible with both private treaty and auction sales.

Hunter Legal & Conveyancing can assist you with applying for and obtaining a deposit bond as we are partnered with reputable bond providers. This is best to take place after a verbal offer on a property has been accepted, but before contracts have been exchanged. An offer must be accepted before a bond will be issued.

Our team of expert Conveyancers will then assist you with the remainder of the Conveyancing process and make it a breeze.

For more detailed information read our article on A Beginner’s Guide to Deposit Bonds.


When you first call

Firstly, please phone us on 1300 224 828. We can provide a fixed quote over the phone, answer any questions you may have, and schedule a meeting if required. Please note, that we have a mobile service throughout the Hunter, and can also perform our service digitally and remotely by phone if you prefer.

In the event a deposit bond is required, we will verify your financial circumstances (i.e. waiting on funding).

We will then compile the paperwork so we can obtain pre-approval for the deposit bond, allowing us to easily process the remainder of the application when necessary.

Our first meeting

We will perform a verification of your identity. Please bring your driver’s license and a birth certificate or passport, as well as a Medicare card.

In the event you are unable to meet us face to face, we can send you a link to complete the verification process digitally or you can also perform a verification of identity at a local Australia Post branch – which will automatically send your verification to our software portal.

During the first meeting, we will review the Contract of Sale for the respective property, obtain financial details, loan approvals as well as any other items we require, and sign relevant documentation.

What we’ll do

We will submit the application and relevant documentation to Deposit Assure.

If approved, the deposit bond will be issued within 24 hours later (subject to the status of your finance approval).

We will then assist with the remainder of the Conveyancing process, which usually takes between 4-6 weeks unless otherwise arranged.


To acquire a deposit bond, a party must satisfy eligibility criteria with the bond provider (which is usually approved finance or the sale of the property before a deposit bond is issued).

In a typical circumstance, a party would first contact a bank or mortgage broker and complete an assessment process with the lender.

As the party most likely does not have a cash deposit, the loan will probably be assessed with other assets, such as funds coming from the sale of another property.

HLC can then assist our clients with the bond application.


In our experience, no, they are happy with either cash or bond. Bond providers are usually owned by large organisations (i.e. QBE Insurance Australia owns Deposit Assure). So utilising a deposit bond provides a sense of security to the vendor that the sale will finalise.

By default, they are valid for three months. Though in some circumstances, we would request it so it matches the term of the contract.

For example, for off-the-plan purchases that will be constructed in two years, we would request the bond to be valid for two years, so the bond doesn’t need to be renewed and corresponds with the sunset clause in the contract of sale.

Yes, we have a Newcastle office as well as a electronic service if you prefer.