In a dispute, our buyer put a file on a house he wanted to buy. The inspections came back without major problems and the terms of the contract were agreed. The only problem? When the buyer tried to obtain homeowner`s insurance for his new home, the insurance found a discrepancy between the age of the roof and a recent request from the seller. The seller had collected money the previous year for a new roof, but hadn`t really put on a new roof! When confronted, the seller agreed to create a new roof before closing, but the buyers decided to cancel the transaction completely and recover their file. When the seller refused to sign the file, the matter went to FREC because the binder was held at the round table. FREC found in favour of the buyer and ordered that their funds be released! A real estate attachment or fiduciary binder is the amount of money a buyer deposits after making an offer for a home and entering into an executed contract. The money is intended to show a home seller that he is making an offer in good faith and also shows the seller that the buyer has the money to make the transaction. The amount of the binder is negotiated. Even if you have paid for the insurance until you have a valid insurance policy on hand, you are in danger once that binder has expired. You are entitled to a copy of your contract. Always follow to make sure your policy has been issued.
A real estate attachment or fiduciary binder is the amount of money a buyer deposits after making an offer for a home and entering into an executed contract. It can contain things like property conditions, financing or contingencies like the sale of a gift home, and even the specific sale price. The binder`s money goes to one of three places. The first option is a hedging company. The seller selects the securities company and holds the record in a trust account until he closes the transaction. The second option is for a lawyer to keep the file in a trust account and return the money to the title company on the day of closing. The third option is that a buyer can place his file either in the broker`s trust fund (broker of his own broker, or the seller`s broker) and keep the file on his own trust account. There is a great advantage to leaving the file with a broker and we will soon talk more about it. In general, it is the insurer`s duty to ensure that a binder holder acts within its powers, so that both parties are encouraged to make the scope clear and precise and to cover all necessary services. Each time you purchase insurance, you must apply for an insurance link in order to have proof that a policy needs to be established and, more importantly, you can confirm that what you have requested is properly insured. „If the deal is accepted, the interested buyer usually deposits $500 to $1,000 of the purchase price,“ he says.