Binder

A written document that records the essential provisions of a contract of insurance and temporarily protects the insured until an insurance company has investigated the risks to be covered, or until a formal policy is issued.

A receipt for cash or for a check that is deposited by a prospective buyer with the seller to secure the right to purchase real estate at terms that have been agreed upon by both buyer and seller.

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binder n. a written statement of the key terms of an agreement, in particular insurance policies, so that the insured as well as lenders can be assured there is valid and adequate insurance coverage. (See: insurance)