Question:

What exactly is title insurance binder or commitment?

Answer:

Title insurance binder or commitment is the title insurer written commitment to provide title insurance as per binder or commitment report after property sale is complete. The cost of the title insurance binder is usually up to $50. Title examination may cost $400, and title document preparation may cost up to $100.

What is in the title insurance binder?

The title insurance binder contains whatever title issues or the absence of such, as discovered during title search and examination. The binder is issued to the lender, and then to the buyer if they are purchasing owners title coverage.

The title insurance coverage is to be provided according to the obtained title information. The title insurance underwriter provides the binder to the lender, advising on the status of property title. Unreleased deeds, IRS liens, judgments and ownership claims are identified and listed on the title insurance commitment and are to be fixed by the title company prior to closing.

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