Payment & Deferred Payment Bonds

If you enter into a contract where you are obliged to make payments at a defined future date, you may be required to post a bond. An example could relate to the sale of land whereby the landowner is willing to sell and transfer ownership of land to a house builder or property developer, but where not all of the purchase price will be paid upon the legal completion of the sale. A deferred consideration bond can guarantee payment of future instalments if the house builder or developer defaults.