Investor Deposit Scheme

The Investor Deposit Scheme (IDS) is an insurance product designed to replace the cash deposit traditionally made at the time of exchange of contracts in the sale and purchase of residential properties.

What are the benefits?

		Secure property without using savings or bridging finance
		Avoid realising other capital investments
		The product is unsecured and inexpensive
		Reduces the "stress and aggro" factor at exchange of contracts
		Posts forward the payment of deposit in full to time of completion
		Application process is easy, fast and convenient.

How does it work?

The Buyer purchases an IDS insurance policy from insurance company and is issued with an IDS Certificate

The Developer accepts the IDS Certificate to secure a property instead of Exchange Deposit

If Buyer fails to complete on agreed date and is in breach of the agreement, the insurer pays the Developer the full amount of the IDS

Having paid the full value of the IDS to the Developer, the insurer will then seek to recover the full deposit amount from the Buyer.

Specifics

Gap between Exchange and Completion = 3 / 48 months

Application fee �285

Premiums set individually for development and investor

Flexible underwriting terms.

Example

		Contract Price �300,000
		24 months to completion
		Exchange deposit 10%
		The "Investor Deposit Scheme" replaces Exchange Deposit
		Buyer pays initial insurance premium of �4,760
		The IDS Certificate is issued and forms part of documentation package at exchange of contracts
		Buyer pays 100% of purchase price at completion.