A binder in New York real estate is:
Question & Answer
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A binding contract
A binder is not a binding contract in New York. While it shows intent to proceed, the transaction remains contingent on attorney approval. Treating it as fully binding would disregard the state's specific attorney review requirement.
A preliminary agreement subject to attorney approval
Insurance documentation
Insurance documentation relates to property coverage and risk protection, not to the preliminary agreements that establish contractual relationships between buyers and sellers.
A title report
A title report provides information about property ownership and encumbrances, serving as due diligence material rather than an agreement between parties.
Why is this correct?
In New York, a binder is explicitly defined as a preliminary agreement that is not binding until approved by the parties' attorneys within a specified timeframe (typically 3-5 days). This attorney review period is a distinctive feature of New York real estate transactions.
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