Binder

Definition

• An agreement with the seller from a potential buyer to consider the purchase of a property. The agreement is secured and backed by a cash deposit as a declaration of good faith on the part of the buyer.

Synonyms
unite, lock-in, secure, tie

Related Terms and Acronyms

• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Homeowners Insurance Binder — Definition,
  • A document accompanying a homeowner's insurance policy that verifies the property is properly insured.
• Purchase Agreement — Definition,
  • A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.