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About: Deposit bond     Goto   Sponge   NotDistinct   Permalink

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A deposit bond or deposit guarantee is a type of surety bond, a financial instrument commonly used in Australia for a security deposit as an alternative to cash. Deposit bonds facilitate residential and commercial real property purchases. A buyer can use a deposit bond in the place of cash, by giving the seller a deposit bond at the time of purchase. The buyer and seller both must agree that the buyer will pay the seller the total sum for the property purchased at a future date; ownership of the property transfers from the seller to the buyer on this date.