London & European has launched Deposit Cover, a deposit guarantee insurance policy designed to keep property transactions moving.
Deposit Coverallows a purchaser to delay payment of deposit until completion. The buyer pays 100% of the agreed purchase price upon completion rather than paying a deposit on exchange, and the guarantee provides the protection the vendor needs if the sale falls through. If a purchaser fails to complete, the deposit guarantee pays the vendor the face value of the deposit.
The terms and conditions of the policy give all parties involved the certainty of an unconditional guarantee that is as good as a cash deposit. The wording of the policy does not result in any change in either party’s rights or obligations than would be the case if a cash deposit was used.
Christopher Taylor, CEO of London & European, said: “Deposit Cover helps to lubricate the wheels of the property buying process. The product does not remove the need for the purchaser to pay the deposit price of the property