Binder Law and Legal Definition
Binder could refer to
- A document in which the buyer and the seller of real property declare their common intention to bring about a transfer of ownership. An outline of the basic terms of a proposed sales contract between a buyer and a seller. This is usually accompanied by the buyer's initial payment.
- The buyer's initial payment in the sale of real property.
- An insurer's memorandum giving the insured temporary coverage while the application for an insurance policy is being processed or while the formal policy is being prepared.
This is also referred to as binding receipt or binding slip.
