binder legal definition

noun

1. A document giving a person temporary insurance coverage until her application for insurance is rejected or until the insurance policy is issued.
2. A document in which the parties to a sale of real property declare their intention to transfer ownership of the property. The document usually includes a memorandum of the important points of the partiesÂ’ contract and is usually accompanied by the buyerÂ’s first payment.
3. The buyerÂ’s first payment toward the purchase of real property. See also earnest money.