Here’s how it works:
When an investor buys a 1- 4 unit residential property and plans to sell it within 2 to 3 years, they will profit from requesting the Interim Binder. The Binder is available for 10% of the policy premium, which is based on the purchase price of the property.
Once the investor is ready to sell the home, the cost to provide the new Buyer with an Eagle Owner’s Policy, the best protection available, is simply the difference in premium between what was originally paid for the property and the new sales price. If the investor does not sell the property in 2 years, the binder may be renewed for an additional year for 10%.
|PURCHASE||TITLE PREMIUM||BINDER RATE|
|$300,000||seller paid $1,089||investor pays $109|
|$400,000||investor pays $196 = $305 (total)|
Without the binder, second policy premium would be $1,285.
Contact Landwood Title today to find out more.
Landwood Title Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. Landwood Title is an authorized agent of First American Title Insurance Company. These rates are effective as of March 30, 2009