The Interim Binder is a contract, not an insurance policy, designed for homebuyers planning to sell within two years. Unlike a title insurance policy, it is a contract to issue a policy at a later date, offering significant savings on title insurance fees. Here’s a simplified breakdown:
When purchasing a home, a buyer can opt for an Interim Binder, which costs 10% of the title charge. For example, on a $400,000 home, the binder costs $128.50. If the home is later resold for $475,000, upgrading the policy costs only $123.00, leading to a total cost of $251.00 for the buyer. This results in a savings of $1,157.00 compared to the usual homeowner’s policy cost.
Key Points About the Interim Binder:
• Extension: The binder can be extended beyond two years for an additional charge.
• Eligibility: It is not limited to investors; anyone planning to move within a few years can benefit.
• Claims: If a title claim arises during the binder period, it converts to a policy.
• Property Types: It is versatile and can be used for various property types, including vacant land.
The Interim Binder is a smart choice for those expecting to resell soon, offering flexibility and savings.
Source: Consumer’s Title Company
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
