Page 15 - CTT buyer Seller 2021_English_Flipbook_1

THE INTERIM BINDER
CHICAGO TITLE CALIFORNIA BUYER & SELLER GUIDE
Chicago Title Can Save Investors Hundreds of Dollars
Saving Short-Term Investor Money
Investors who plan to sell their acquired properties within 2 years from the date of original policy issuance should consider obtaining an Interim Binder for savings on title insurance premiums.
The fee for this binder is 10% of the applicable owner’s policy fee at the time of purchase.
At the time of sale, the interim binder is exercised and applied to the issuance of the new owner’s policy of title insurance. Any additional fee for this new policy is calculated based upon the increased liability AND the type of policy requested.
Facts: √ Property was last insured 4 1/2 years ago
√ Person A sells the property to Person B for $400,000.00
√ In less than 2 years, Person B sells to Person C for $500,000.00
With an Interim Binder:
Original Sales Price: Homeowner’s Title Fee:
Buyer Pays Additional 10%
Sells within 2 Years: Homeowner’s Title Fee:
Less the Original Fee:
Interim Binder Fee for Conversion:
$400,000.00 $1,438.00 $144.00 $500,000.00 $1,646.00 $1,438.00 $208.00
Person B pays $352.00 to resell his property ($144.00 + $208.00)
Without an Interim Binder:
Original Sales Price: Homeowner’s Title Fee: Sells within 2 Years: Homeowner’s Title Fee:
$400,000.00 $1,438.00 $500,000.00 $1,646.00
Person B pays $1,646.00 to resell his property
$1,294.00 SAVINGS
If the investor decides to hold the property for more than 2 years, he can extend the already active Interim Binder for another 2 years for an additional 10% ($144.00) provided the extension is requested prior to the expiration date of the binder.
Other fees and charges may apply. Amounts shown herein are examples and subject to change without notice.
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