Title Binder Policy Can Save You Money

In the Palm Springs market place a typical expense of a seller is to pay for the title insurance policy for the buyer when they sell their home. However, if the seller had purchased a Title Binder policy before closing escrow their escrow (back when they purchased the home) the seller can now realize a substantial savings upon resale.

How does this work?

When you are the buyer getting ready to close escrow (finalize the sale) on your new home be sure to request that you be issued a Title Binder policy.The seller you are buying your home from is actually paying the cost of your Title Policy. However, you would request and pay for the Title Binder policy

(typically a few hundred dollars or less - 15% of the cost of the title policy) yourself.

Then three years or less down the road when you go to resell your home you tell your agent that you have a binder policy for the title company. This gives you to a substantial discount on the policy you are going to have to provide for your buyer. Your only fee will be on the difference between what you paid and what your buyer is now paying. Again typically a few hundred dollars versus the thousand plus that you would otherwise be paying.

The three year restriction may not work for you if you are planning on buying and holding the property. Some title companies will allow you to extend it to four years for a small extra premium. Despite this is if you are buying for the short term, know you will be transferred, up-size or downsize or even if you are flipping houses for profit
Title Binder Policies make lots of sense.

Small savings like these may not be dramatic but can really add up overtime and maximize the value of your home ownership experience.