![]() An interim binder can also help property flippers sidestep several title fees that are usually assessed to insure the same property.įor this reason, title binders are also useful for people who frequently relocate. Because title binders generally cost only 10% of the full policy, they buy a title binder when they know they will flip the home instead of acquiring a full title insurance policy that may cost hundreds of dollars more. ![]() ![]() Real estate investors, particularly flippers, use a title binder to cut costs on title policies. Title binders are not legally required but are commonly used in many real estate transactions. Note that a title binder is not insurance per se, but it represents a commitment from the title insurance company to issue a policy. It covers things like acts of God, physical damage, and theft. A title binder acts as a placeholder until an actual policy can be issued.Ī title binder works like title insurance but with a standard term of 30 days up to a maximum of two years (although it can be extended for another two years for an extra fee). Also known as an interim binder, a title binder is an insurance policy that covers the transitional period in a real estate transaction where the buyer’s and seller’s insurance policies do not overlap in coverage.
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