Do you know what a Title Binder is?
Do you know what a Title Binder is?
Today more than ever people are looking to save money. The Title Binder is a way for a Potential individual who knows that they will sell the property within 1-3 years to save some money.
There are individuals who buy a dilapidated home and fix it up with the intent on re-selling the home within one to three years. These developers, individuals who intend on reselling for a small profit have the most to gain.
The Title Binder allows a CLTA Standard Coverage Owners Policy of title insurance to buy at a fraction of the cost. Binders are valid for 2 years and could be extended another year.
The Objective behind the binder is that when you initially purchase the property you can pay and additions 20% of the CLTA Standard Coverage Owners rate on title insurance to get the Title Binder.
Therefore my advice is when you buy the property in your negotiation try to ask the seller to pick up this additional 20% cost on the Title Insurance, if you cannot than you should purchase the difference. By you partly paying the difference between the initial cost and the actual price of the policy you will reap a great financial benefit when you are selling the home.
You will only have to pay on the difference of the Purchase vs. Sales Price; any Title Sales Representative will confirm what I just suggested. In other words let’s say you bought the house for $500,000.00 and after fixing it up and living in it for a few years you end up selling for $850, 0000.00 you will pay Title insurance on the difference which is $350,000.00 rather than paying Title Insurance on the new Sales Price of $850,000.00.
The beauty of a Title Binder is that it does not matter whether you are buying a home in Los Angels in the city or if you are buying an Ocean View home in Malibu, you can take advantage of the Title Binder’s benefit.
If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of my commission to Local Animal Rescue Organizations
