The basic rate for a ALTA Homeowners Title Policy at that price would be $2,695.00. The buyer sells the property two years later for $1,200,000.00. The binder fee is an additional $221.00, or 10% of the basic rate. In this case, the basic rate is $2,210.00. The use of a binder in your transaction can result in a significant savings when the property is resold.Įxample: $1,000,000.00 – Initial Sales Priceīuyer plans to sell within three years for $1,200,000.00 This is in addition to the applicable fee for an Owner’s Policy (usually paid by the seller). The fee for a two–year binder is 10% of the basic rate for a full title policy. The binder must be requested before the property being purchased closes escrow. The buyer of a property who anticipates reselling it within 1–3 years can save a significant amount in title charges by purchasing a binder.* A binder is a temporary contract in which the title company agrees to issue a specified policy within a certain period of time.
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