Contract Question

[nunzia]

I am reviewing my contract, and there is an option I don't understand. There is an option to have "full closing with title search and title insurance" or,
"deed only closing".
I am guessing you would HAVE to have the title search and insurance to really feel good about the whole thing, but naturally it's more, and naturally this higher cost was not shown as closing costs in the ad..Just seems a bit sneaky. So..I really do need the title search and title insurance, right?
And there is an administrative fee on top of this..so OK.

 

[disneynutz]

I am reviewing my contract, and there is an option I don't understand. There is an option to have "full closing with title search and title insurance" or,
"deed only closing".
I am guessing you would HAVE to have the title search and insurance to really feel good about the whole thing, but naturally it's more, and naturally this higher cost was not shown as closing costs in the ad..Just seems a bit sneaky. So..I really do need the title search and title insurance, right?
And there is an administrative fee on top of this..so OK.

Another GMAC client. Their fees are high and a bit sneaky. I have not been able to get a good title search answer either. DVD knows the history of every point sold and they control the closing. I wouldn't think that they would let a sale go through unless the title was clear.

 

[nunzia]

Another GMAC client. Their fees are high and a bit sneaky. I have not been able to get a good title search answer either. DVD knows the history of every point sold and they control the closing. I wouldn't think that they would let a sale go through unless the title was clear.

LOL..that is correct! And I was hesitant to go with them, but for the very small first contract I wanted to start with, they had the most choices..at a premium, if you count the fees..but that's OK. I'll be "in" and then I can have more freedom.
Still don't know if I should ricks the cheaper closing or just bite the bullet, but maybe someone else knows something?
Thanks

 

[4Pluto]

DVD knows the history of every point sold and they control the closing. I wouldn't think that they would let a sale go through unless the title was clear.

Disney does not control the closing of a resale contract and they do not search to see if title to a resale purchaser is clear. They police their right of first refusal and they put new owners in their reservation system but that's only after the closing (after your money is gone).

If you don't have title insurance, how do you plan to determine whether there is financing on the contract and if so, what are you going to do to make sure that it is paid off at Closing. Who gets an estoppel from DVD showing all maintenance fees have been paid? How are you confirming the number of points in the contract (or that the Seller actually owns the contract). Who is going to review the deed to make sure that it is signed by the right parties in the right capacities in a legally binding form? Without a title policy, if you don't get what you paid for you can sue the Seller on your contract but assuming the seller doesn't spend your money before you hire an attorney, go to court and get a judgment, you're still out a lot of time and money.

I would not be comfortable doing all of the work required to avoid a title policy but I don't like surprises.

 

[disneynutz]

Disney does not control the closing of a resale contract and they do not search to see if title to a resale purchaser is clear. They police their right of first refusal and they put new owners in their reservation system but that's only after the closing (after your money is gone).

If you don't have title insurance, how do you plan to determine whether there is financing on the contract and if so, what are you going to do to make sure that it is paid off at Closing. Who gets an estoppel from DVD showing all maintenance fees have been paid? How are you confirming the number of points in the contract (or that the Seller actually owns the contract). Who is going to review the deed to make sure that it is signed by the right parties in the right capacities in a legally binding form? Without a title policy, if you don't get what you paid for you can sue the Seller on your contract but assuming the seller doesn't spend your money before you hire an attorney, go to court and get a judgment, you're still out a lot of time and money.

I would not be comfortable doing all of the work required to avoid a title policy but I don't like surprises.

DVD knows who has owned your unit/contract. They also won't let the title transfer if the original member owes back dues or other moneys and they verify that the sales contract is written correctly. Banked and current points must be listed correctly and the names on the contracts must match any existing membership. If anything is incorrect DVD will bounce the contract until corrected. You can use a broker and a escrow agent or you can sell by owner. I just wonder about the title insurance when Disney ends up owning your unit latter anyway.

 

[nunzia]

I went ahead and just paid for the higher title search, etc. Better safe than big hassles down the road.