Binders in Florida Real Estate
A binder in Florida real estate refers to either a preliminary purchase agreement with an accompanying deposit or a title insurance commitment. Both uses involve preliminary commitments that precede formal documentation.
Purchase Binders
A purchase binder demonstrates the buyer's serious intent while a formal contract is prepared. The binder deposit is typically applied to the earnest money when the formal contract is executed. If the parties cannot agree on contract terms, the binder deposit is usually refundable. Modern practice favors direct submission of formal contracts over preliminary binders.
Title Insurance Binders
A title insurance binder (commitment) is the title company's preliminary report and promise to issue a policy. It identifies the property owner, lists encumbrances and exceptions, states requirements for issuing the policy, and establishes the proposed policy terms. Buyers and lenders review the binder to identify title issues that must be resolved before closing.
Related Terms
Barnes Walker Title Services
Barnes Walker Title issues title commitments and handles closings throughout Southwest Florida. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC