Buyers Guide

T H E I NT ER IM B I ND E R

Security Title Can Save Your Investors Hundreds of Dollars Saving Short-Term Investors Money Investors who plan to sel l thei r propert ies wi thin a shor t per iod of t ime should cons ider the Inter im Binder for substant ial savings on t i t le insurance premiums . The Inter im Binder i s not , in i tsel f, a pol icy of t i t le insurance but i s an inter im binder i ssued on the proper ty. When i ssued, however, i t binds Secur i ty Ti t le to i ssue a pol icy of t i t le insurance wi thin two years . The fee i s a mere 10% of the bas ic pol icy fee to the request ing party. When the deed of the f inal purchase i s recorded, the Inter im Binder i s exerci sed and a pol icy of t i t le insurance i s i ssued to the f inal purchaser. The only addi t ional fee at the t ime would be a l iabi l i ty charge based upon the di f ference between the or iginal sel l ing pr ice and the sel l ing pr ice to the f inal buyer. Let ’s look at an example, assuming that the sel ler i s paying for the owner ’s insurance in favor of the buyer in both cases :

FACTS • Property was last insured 4 1/2 years ago • Mr. A sells the property to Mr. B for $500,000.00 • In less than 2 years, Mr. B sells to Mr. C for $600,000.00

WITHOUT AN INTERIM BINDER: Or iginal Sales Pr ice:

WITH AN INTERIM BINDER: Or iginal Sales Pr ice:

$500,000.00

$500,000.00

Homeowner ’s Ti t le Fee:

$1 ,509.00

Homeowner ’s Ti t le Fee:

$1 ,509.00

Sel l s wi thin 2 Years :

$600,000.00

Buyer Pays Addi t ional 10%

$150.90

Homeowner ’s Ti t le Fee:

$1 ,683.00

Sel l s wi thin 2 Years :

$600,000.00

Homeowner ’s Ti t le Fee:

$1 ,683.00

Mr . B pays $1 ,683.00 to resel l hi s property

Less the Or igianl Fee: $1 ,509.00 Inter im Binder Fee of Convers ion: $174.00

I f the buyer decides to hold the proper ty for more than 2 years , he can extend the al ready act ive Inter im Binder for another 2 years for an addi t ional 10% ($150.90) i f he elects to do so before i t expi res .

Mr. B pays $324.90 to resel l his property ($150.90 + $174.00)

$1,358.10 SAVINGS

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Co p y r i g h t 2 0 1 7 S e c u r i t y T i t l e : Co n t e n t c a n n o t b e e d i t e d o r r e p r o d u c e d w i t h o u t w r i tt e n p e r m i s s i o n f r om S e c u r i t y T i t l e . A l l c o n t e n t h e r e i n i s i n f o r ma ti o n a l o n l y a n d n o t i n t e n d e d t o offe r l e g a l o r fi n a n c i a l a d v i c e .