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What exactly is a binder?
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BabyAvocado
Happy New Year
Member since 5/05 17334 total posts
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What exactly is a binder?
We probably aren't buying but I'm doing some research, thanks!
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Posted 5/30/05 3:13 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
Blazesyth
*yawn*
Member since 5/05 8129 total posts
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Re: What exactly is a binder?
Its a small amount of money (around $100.00) you give to the seller when you first see the house if you are very interested and think you will want to place an offer. In my case, it was just a photocopy of a check, so they couldn't even cash it LOL
Just so they know there is a 'more serious' offer on coming down the pipe. If it really works, making you look attractive to sellers, I don't know.
I signed some papers that my buyers agent would give the seller with the binder, stating that it is my intention to put in an offer so please accept the binder as good faith, blah blah blah but we never ended up using it.
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| Posted 5/30/05 7:43 PM |
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-Lisa-
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Member since 5/05 6530 total posts
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Lisa
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Re: What exactly is a binder?
The only time(s) we ever gave a binder was when we were making an offer. Even though we retracted bids on an accepted offer, the binder check was never cashed.
I think its a waste and not all agents use them.
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| Posted 5/30/05 9:14 PM |
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Shaps
LIF Zygote
Member since 5/05 48 total posts
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Name
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Re: What exactly is a binder?
Binder checks are never cashed. It is a very antiquated system to give a check with a binder, and many re agents don't both with them anymore (if they know what they are for to begin with- which is often questionable). A binder has to be signed by both parties, but a seller's attorney will (or should) advise them not to bother to sign it...so it's worthless. I binder is generally considered an agreement to agree, which is not an enforceable contract under the law. There are rare occassions, however, when a party backs out of a binder and the court will consider it to be an enforceable contract (I can't stress enough how rare that actually is in residential real estate). Basically, until there are signed contracts either party can back out so the binder is pretty much worthless.
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| Posted 5/31/05 8:47 AM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
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Re: What exactly is a binder?
our attorney told us not to sign any binders and if we were "forced/bullied" into it to sign it with the phrase
"subject to my attorney's approval and engineers inspection"
you most likely won't need the legal loophole...but it sure doesn't hurt
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| Posted 5/31/05 10:35 AM |
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