Is title insurance binder equivalent to a title insurance policy?

No, a title insurance binder represents the written commitment of the title insurance company that it will provide coverage based on the contents of the binder.

After the title search, the one who made the examination will list down any problems in the title or will also indicate if he found no problems with the title. It is then given to the bank or the lender. Once the transaction for the property purchase is closed, the title binder is given to the buyer, who will then buy the title insurance from the title company who issued the binder.

The binder may contain a list of clouds in the policy, like IRS lines, deeds that have been unreleased, ownership claims and judgments. These are the things that have to be fixed before the purchase is closed and before the policy is issued.

• I am refinancing my mortgage. Do I need to purchase a new title insurance policy?
• Do I need extended title insurance coverage for bare land?
• Is there a way for me to save on my title insurance fees?
• At what instances should I get extended coverage on title insurance?
• What value does a real estate lawyer add on top of title insurance?