Title Binder

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Title Binder'

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.

RELATED TERMS
  1. Real Estate

    Land plus anything on it, including buildings and natural resources.
  2. Flood Insurance

    A financial instrument that protects real property owners from ...
  3. Apportionment

    The allocation of a loss between all of the insurance companies ...
  4. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  5. Homeowners Insurance

    A form of property insurance designed to protect an individual's ...
  6. Finite Risk Insurance

    An insurance contract in which the insured provides a pool of ...
Related Articles
  1. Home & Auto

    The Beginner's Guide To Homeowners' Insurance

    Discover everything new homeowners need to know before they sign on the dotted line.
  2. Insurance

    With HO5 Insurance, You're In Charge

    This home insurance covers everything and will put the onus on your insurance provider.
  3. Home & Auto

    Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.
  4. Home & Auto

    Understanding Lender-Required Flood Insurance

    Having to buy flood insurance shouldn't be a surprise. Find out what you need to know when purchasing or refinancing a house.
  5. Insurance

    What Happens If Your Insurance Company Goes Bankrupt?

    When insurance companies go bankrupt or face financial difficulty, it's bad news for policy holders.
  6. Insurance

    Which States Have the Cheapest Home Insurance?

    You can't choose where you live by its insurance rates. But if you did, these are the states to pick.
  7. Insurance

    How to Use a Waiver of Subrogation

    A waiver of subrogation means that a party to a contract waives the right to allow someone (usually an insurance company) to sue the other party to the contract in case of a loss.
  8. Insurance

    Insurance Myths Involve Houses, Cars & Big Crashes

    Any confusion over what to buy or how to use a product can end up being costly, but when it comes to insurance, misunderstandings can cost thousands.
  9. Investing Basics

    Rental Property: Getting Rich Means Taking It Slowly

    I have two second cousins who serve in the military. We don't always talk much, though. The age gap can be a roadblock and those boys are always traveling
  10. Insurance

    How the Affordable Care Act Changed Insurance

    6 Ways Obamacare Impacts the Health Insurance Marketplace

You May Also Like

Hot Definitions
  1. Risk Averse

    A description of an investor who, when faced with two investments with a similar expected return (but different risks), will ...
  2. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  3. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  4. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  5. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  6. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
Trading Center