Selling a home is a major endeavor for any Ohio resident. Though someone may feel as if he or she has found the right buyers, it can take weeks, if not months, before the keys to that home to land in the buyer’s hand. Plus, during those weeks, opportunity exists for much to go wrong, so it is wise to take precautions during real estate transactions.
One protective measure that could help both buyers and sellers is title binder insurance. To be clear, title binder insurance and title insurance are not the same thing. With a title binder, temporary insurance is obtained that covers the transition of ownership period between the seller and the buyer. In some cases, the homeowner’s insurance policies of the seller and may not overlap neatly enough to cover that transitional period, and a title binder can help. This binder can help provide coverage in the event that a natural disaster or other issue causes damage to the home during the transition of ownership.
It is also important to note that a title binder is not appropriate for all real estate transactions. Often, a binder will last only two years, which makes it more ideal for individuals looking to buy and flip property. A title binder could also offer financial benefits to buyers by saving them money on a policy of title.
Title binders, title insurance and other similar terms and documents can all go into real estate transactions. If Ohio residents are not careful, they may end up mistaking one thing for another and winding up in a bind. Fortunately, experienced real estate attorneys can help with the various steps of this type of transaction and ensure that everyone understands the importance and uses of the insurance types involved.