Deferred Consideration Bonds (also known as Land Purchase Guarantees)
A landowner may be willing to sell land to a house builder or property developer on deferred payment terms. To give the landowner comfort, a deferred consideration bond can be arranged that will guarantee payment of instalments in the event that the house builder or developer defaults.
This method of bonding frees up the financial resourses of the house builder or developer and gives peace of mind to the seller of land.
HCC International can offer a very quick turnaround service using the following process:
- Provide us details of the proposed land purchase, the sale price, the amount to be deferred, the amounts and due dates of the instalments and name(s) of the beneficiary together with:
- A copy of the draft sale agreement
- A copy of your last published annual accounts (if you are part of group – group accounts, too)
- A copy of your latest management accounts
- Execute legal documents sent to you when you have accepted our terms.
- Send us a bank transfer covering the premium invoiced.
- Upon receipt of your application we will respond to you quickly with our quotation and any request for further information.
- Once you have accepted our terms and provided any additional information requested, we will send you any legal documents that need to be executed and an invoice for the premium.
- Following receipt of the completed legal paperwork and premium, we issue the bond – usually to you as you may be required to execute it as well.