Definition of "Binder"

Yelena  Borukhov real estate agent

Written by

Yelena Borukhovelite badge icon

Douglas Elliman - Roslyn

(1) Temporary and symbolic payment showing good faith and obligating two or more individuals until a final transaction takes place. The binder is typically returned if the final agreement is not consumed. (2) Deposit paid to secure the right to buy a house based on the agreed terms. (3) Written memorandum of the contract terms of insurance that provides temporary protection to the insured pending final approval by the insurance company.

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