The deposit for an off-the-plan purchase must remain in trust until settlement and the deposit power bond provides a timely solution.

However, there has been a trend for development financiers to restrict the number of sales where the deposit is paid by a deposit bond and to limit the number of underwriters to those they assess as having prudent credit assessment guidelines and the financial capacity to honour the payment of the deposit on the settlement date if required.

An option may be to pay the deposit with cash funds or a redraw facility that is refunded in exchange for a bank guarantee.