Definition
This is a preliminary title insurance document some title companies issue temporarily before they're ready with the full commitment. It's less detailed but keeps things moving while they finish their work.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
A title binder is an optional preliminary document some title companies issue to provide temporary coverage before the full commitment is ready. It confirms that the title company will likely issue a policy once the commitment is issued and conditions are met. The binder is less detailed than the full commitment but allows the transaction to move forward while the title company completes its examination.
Pro Tip
A title binder is not common. Don't confuse it with the final commitment—review the final when received.
Example
The title company issued a title binder confirming initial coverage while they completed the detailed title examination and commitment. Two weeks later, the final title commitment was issued.