ADVANCED PAYMENT FOR BUYING A DWELLING

This type of bonds are required by law and according to current legislation, in which the builders are obliged to provide a surety insurance when home buyers sign a contract and make payments into an account in order for the building of the home to go ahead.

This bond guarantees the return of the amounts paid on account, plus interests legally due should the building of the home not go ahead, or if this building is carried out at different phases to that set out in the sales contract. It is valid until the legal documentation which allows for the home to be handed over is drawn up and the builder can provide proof that the purchaser has actually been given the home.