When you have an accepted offer on the sale of your home, the buyer has to provide a deposit within 24 hours. Traditionally, that means going to the bank, getting a certified cheque, and delivering it to the listing agent's brokerage.
With a Deposit Guarantees, as soon as you accept the offer, the Deposit Guarantee takes effect. That part of the contract is instantly fulfilled, with no chance for cold feet by the seller. It's rare, but some buyers may not deliver the deposit cheque the next day. It’s called Buyer’s Remorse.
Aviva Insurance insures our Guarantees rated 'AA - ' (excellent) by A.M. Best, 'A - ' (strong) by S&P, and 'A' (good) by DBRS.
Since a cash deposit is usually issued within 24 hours of an accepted offer, most buyers need to come up with cash, but 24 hours notice is not enough for some buyers to put together $20,000-$100,000.
With Deposit Guarantees, they can offer up to $100,000 as a guaranteed deposit instantly without finding cash. This means more potential buyers and more potential buyers give you a better chance at bringing the price of your home up.
Are you planning on using the equity in your current home to buy your next? Many buyers don't have the liquid cash available or prefer not to liquidate investments or tie up lines of credit. Deposit Guarantees allow you to still buy a home without securing a bridge loan. When you close on your current home, you can use the proceeds from the sale to purchase the next home.
Deposit Guarantees make your life easier on both sides of the transaction.
Want to get any more specific Deposit Guarantee questions answered? You can book a call with a team member or use our calculator to get a quote for your Deposit Guarantees.