Lesson 5 · Home Closing Insurance · For sellers
Doesn't the buyer's deposit already protect me?
The short answer
Not the way most sellers think. If a buyer fails to close, the deposit sits in a trust account and only comes out by mutual consent or a court order, which commonly takes 6 to 18 months, and it may not come to you. It rarely covers carrying costs, legal fees or a lower re-sale price. Home closing insurance covers the seller when the loss happens.
Key facts
- If the buyer doesn't close
- The deposit is held in trust
- To release it
- Mutual consent or a court order
- How long
- Commonly 6 to 18 months, and not guaranteed to come to you
- What it misses
- Carrying costs, legal fees, a lower re-sale price
- Home closing insurance
- Covers delays and defaults, up to 20% of the sale price, max $250,000, depending on the coverage selected
Transcript
Read the full transcript
Doesn't the buyer's deposit already protect you?
Not the way most sellers think.
When a buyer fails to close, the deposit doesn't land in your account.
It sits in a trust account, and it only comes out by mutual consent, or a court order.
That commonly takes 6 to 18 months, and it's not guaranteed to come to you.
Meanwhile, the deposit rarely covers the real cost.
Carrying costs, legal fees, and a lower price if you have to re-list.
The deposit isn't protection from a legal dispute.
The deposit is the legal dispute.
Home Closing Insurance covers the seller when the loss actually happens.
It covers delays and defaults, up to 20% of the sale price, to a maximum of $250,000, depending on the coverage you choose.
And you don't pay until the deal is firm.
Get a free quote in minutes, at securemyoffer.com/quote.
Summary only. Coverage, eligibility and conditions are governed by the policy and surety documents. Questions about coverage? Talk to a licensed broker at 1-833-766-2329.
