1. Down Payment Bonds for ResidentialProject Marketers for Pre Sales Essential Knowledge For Real Estate Sales Professionals About Down Payment Bonds and How They Can Be Used to Generate More Sales During Pre-Construction Marketing

2. Whywould IrecommendDownPaymentBonds as an Option?With a down payment bond, there is no need for yourpurchaser to use cash for the required down payment whenpurchasing a property that may not be complete for sometime. By providing this option to your clients, you may wellfind out that they would make a faster and more favorabledecision due to this option you have provided them. 3. Whywould IrecommendDownPaymentBonds as an Option?If your buyers do not need to withdraw cash from their savings orinvestments, or obtain nancing by using equity in anotherproperty and were provided this option instead, you eliminate alot of barriers of entry for your clients.This option would create a more willing buyer !A purchaser now has another option for their down payment, thatthey did not have before. 4. What is the benefit to the Buyer?Down payment bonds replace the requirement to outlay a cashdeposit, allowing buyers to keep their money working for themright up until closing. Then, at closing, they pay the propertys fullpurchase price.For many of todays property buyers, the cash required for thedeposit is often tied up in their current home or other investments.This can mean either expensive bridging nance or borrowingfrom a nance company/bank at high interest rates.Down Payment Bonds provide flexibility for the purchaser ! 5. What is the benefit to the Buyer?Regardless of where the nance is obtained, interest charges,establishment fees and other up-front costs connected with theloan can be expensive and time-consuming to arrange.For buyers that do have the cash available for the deposit, theywould prefer to tie up a small portion of this, rather than the fulldeposit amount. This allows their money to continue working forthem, right up until closing when they pay the full purchase price.A smart, safe and secure way for the purchaser ! 6. What is the benefit to a Seller, Developer or Construction Financier?A purchaser that has been approved for a down payment bond,assures the sellers and developers that this buyers has been prequalified as having the nancial capability to not only meet theirexisting financial commitments, but also are able to complete thetransaction. If the buyer defaults under the Purchase and Saleagreement, the seller is entitled to claim / retain the downpayment bond amount from QBE Insurance.This amount will be paid to the seller nominated in the agreementafter QBE Insurance is provided with the request for payment andnotice of termination of the Purchase and Sale agreement. QBEInsurance will then seek recovery from the buyer via the IndemnityAgreement, which is signed by the buyer as part of theapplication form. 7. What is the Indemnity Agreement that isincluded in the Application Form? DPOs Down payment bonds are issued on the understanding that the buyer will pay the seller the down payment bond amount on the closing date of the contract (as the buyer will pay the full purchase price of the property). The Indemnity Agreement is a legally binding right the buyer gives to QBE Insurance to pursue recovery against the buyer for any part of the Down payment bond amount that must be paid to the seller by QBE if the buyer defaulted under the Purchase and Sale agreement. 8. So Down Payment Bonds are insured? Yes. All DPO down payment bonds are underwritten by QBE Specialty Insurance Company, a part of the QBE Insurance Group Limited (QBE). 9. Who is QBE Insurance Group?QBE Insurance Group Limited is one of the top 25 insurers andreinsurers worldwide with operations in all key global insurancemarkets with operations in 49 countries with over 13,500 staffworldwide. Rated "A" (Excellent) by A.M. Best and "A+" byStandard and Poors. 10. How would my client qualify for a Down Payment Bond? Eligible applicants must be US citizens. Applicants can be individuals or couples. The applicant may be an existing property owner who wishes to purchase another property or investors who wish to expand their property portfolio. To qualify for a Down payment bond an applicant will complete a DPO application form and supply the supporting information required as noted in the application form. DPO will then underwrite and assess the application and determine whether the applicant has the nancial capacity to be able to complete on the new property purchase taking into account the applicants current overall nancial position. 11. Connect with Us! Down Payment Options410 S. Rampart Boulevard Suite #390Las Vegas, NV 89145Tel. 1.702.726.6818info@downpaymentoptions.comwww.downpaymentoptions.com