Title Binder

Title Binder
A temporary form of real estate insurance coverage related to the transfer of ownership. A title binder is typically used to protect both the seller and buyer of a real estate property during the transitional phase of a sale when the seller's and buyer's home insurance policies do not necessarily overlap over the same time frame. Although they are not legally required in all cases, title binders are a common protective insurance in real estate transactions.

Title binders may be considered vital in some jurisdictions prior to real estate agencies agreeing to list a property or close a sale. Typical title binders will provide the buyer and seller protection from theft, acts of god and other sorts of physical damage during the closing of a property transaction.


Investment dictionary. . 2012.

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