Direct closing costs???

[KAT4DISNEY]

We went on a tour last September (before we bought resale lol) and I am pretty sure the closing costs were something really low, like around $300. When we ended up buying resale we noticed the huge difference in closing costs. It was more than double.

They have been increasing and now are the equivalent of resale. Maybe more in some cases. It's no longer a "reason" to buy direct anymore.

 

[KAT4DISNEY]

Why would you need title insurance when buying direct?????? Is DVC selling Direct Points with bankruptcy or foreclosure issues???? I would really question my Guide if they were trying to sell me title insurance for a Direct Contract! If First American Title Company can't set up a clean deed, they need to be using a different company.

I would not pay for title insurance on a direct contract.

 

[crvetter]

I would not pay for title insurance on a direct contract.

I would still suggest you do because any claim against the property (contractor too) can cause a claim against you. Just because it is a “clean” title doesn’t mean something can come up. Say Disney doesn’t pay a contractor that worked on the unit you own they can put a lien. Then you could be liable. Title insurance isn’t to protect against a claim of ownership too.

 

[KAT4DISNEY]

I would still suggest you do because any claim against the property (contractor too) can cause a claim against you. Just because it is a “clean” title doesn’t mean something can come up. Say Disney doesn’t pay a contractor that worked on the unit you own they can put a lien. Then you could be liable. Title insurance isn’t to protect against a claim of ownership too.

On this matter I feel the risk is not worth the cost. If Disney has not paid the bill for some work done there are going to be far larger issues with DVC. I also do not believe that clean title prevents liens after the fact which is where the risk would lay in that area.

 

[crvetter]

On this matter I feel the risk is not worth the cost. If Disney has not paid the bill for some work done there are going to be far larger issues with DVC. I also do not believe that clean title prevents liens after the fact which is where the risk would lay in that area.

Agreed, A clean title doesn’t prevent liens. It only says that they couldn’t find any at the time (the liens could have been missed or not filed at time of searching). The whole point of the title insurance is that it is to protect you against it. Plus without buying title insurance technically you would never have the title search done to guarantee a clean title in the first place. While I agree Disney likely did some research but mistakes happen the fractional cost of insurance here is something I personally would never steer someone from buying.

The rough $1 a point wouldn’t be worth dropping it for me.

For saving 200 on what would be 25-40k cost today seems so marginal. And sometimes there are contractor disputes that may not having thing to do with Disney not being able to pay. Could be frivolous as I suggested.

But everyone should do what they feel comfortable. Just wanted everyone to know a clean title doesn’t guarantee a clean tile else title insurance wouldn’t need to exist for any real estate. It’s meant to cover claims that couldn’t be found at the time of the search.

 

[KAT4DISNEY]

That’s actually not true. A clean title doesn’t prevent liens. It only says that they couldn’t find any at the time (the liens could have been missed or not filed at time of searching). The whole point of the title insurance is that it is to protect you against it. Plus without buying title insurance technically you would never have the title search done to guarantee a clean title in the first place. While I agree Disney likely did some research but mistakes happen the fractional cost of insurance here is something I personally would never steer someone from buying.

The rough $1 a point wouldn’t be worth dropping it for me.

For saving 200 on what would be 25-40k cost today seems so marginal. And sometimes there are contractor disputes that may not having thing to do with Disney not being able to pay. Could be frivolous as I suggested.

But everyone should do what they feel comfortable. Just wanted everyone to know a clean title doesn’t guarantee a clean tile else title insurance wouldn’t need to exist for any real estate. It’s meant to cover claims that couldn’t be found at the time of the search.

I believe that's what I said.

This is about as risk free as it's going to get in real estate and again, I think the risk is not worth the cost for a direct purchase. It's some nice money for someone though.

 

[crvetter]

I believe that's what I said.

This is about as risk free as it's going to get in real estate and again, I think the risk is not worth the cost for a direct purchase. It's some nice money for someone though.

I apologize I misread what you said. I agree with you. It really comes down to risk tolerance in the end. Didn’t mean to state the same thing as you, sorry. I’ve edited to state so.

 

[KAT4DISNEY]

I apologize I misread what you said. I agree with you. It really comes down to risk tolerance in the end. Didn’t mean to state the same thing as you, sorry. I’ve edited to state so.

I miss both reading and typing not a lot! Had to double check before I responded if this was one of those times.

 

[crvetter]

I miss both reading and typing not a lot! Had to double check before I responded if this was one of those times.

I feel you there. Sometimes the words just get the best of me.