1. A document in which the buyer and the seller of real property declare their common intention to bring about a transfer of ownership, usu. accompanied by the buyer’s initial payment.
2. Loosely, the buyer’s initial payment in the sale of real property. Cf. EARNEST MONEY.
3. An insurer’s memorandum giving the insured temporary coverage while the application for an insurance policy is being processed or while the formal policy is being prepared. [Cases: Insurance 1748.] ¡ª Also termed binding receipt; binding slip.