Page 15 - CTT English Buyer Seller Guide
P. 15

Saving Short-Term Investor Money
Investors who plan to sell their properties within a short period of time should consider the Interim Binder for substantial savings on title insurance premiums.
The Interim Binder is not, in itself, a policy of title insur- ance but is an Interim Binder issued on the property. When issued, however, it binds Chicago Title, if requested within the 2-year period, to issue a policy of title insurance. The fee is a mere 10% of the basic policy fee to the requesting party.
When the deed of the final purchase is recorded, the Interim Binder is exercised and a policy of title insurance is issued to the final purchaser. The only additional fee at the time would be a liability charge based upon the difference between the original selling price and the selling price to the final buyer.
Let’s look at an example, assuming that the seller is paying for the owner’s insurance in favor of the buyer in both cases:
Without an Interim Binder:
Other fees and charges may apply. Amounts shown herein are suject to change without notice. Date: January 19, 2015.
With an Interim Binder:
$151.00 Interim Binder Fee for Conversion:
Mr. B pays $325.00 to resell his property ($151.00 + $174.00)
If the buyer decides to hold the propety for more than 2 years, he can extend the already active Interim Binder for another 2 years for an additional 10% ($151.00) provided the extension is requested prior to the expiration date of the binder.

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