Resale and Title Insurance

[twinsouvenirs]

So we've landed a resale contract that we love, but I am wondering how necessary title insurance is on this transaction. Any thoughts? I'm well aware of how important it is on traditional real estate transactions, but has any buyer (probably specifically resale) had anything arise on the title report? Do liens even attach to DVC deeds in FL?

I am well versed in real estate law/title insurance but do not know if there is real value in this. If I can decline and save enough to buy a Poly point or two in the future, and if it makes sense to do so, I might. Anyone done this?

 

[disneynutz]

It is a real estate transaction and title insurance is pretty much the norm.

Bill

 

[Dean]

So we've landed a resale contract that we love, but I am wondering how necessary title insurance is on this transaction. Any thoughts? I'm well aware of how important it is on traditional real estate transactions, but has any buyer (probably specifically resale) had anything arise on the title report? Do liens even attach to DVC deeds in FL?

I am well versed in real estate law/title insurance but do not know if there is real value in this. If I can decline and save enough to buy a Poly point or two in the future, and if it makes sense to do so, I might. Anyone done this?

I'll disagree with Bill on this one. IMO it's almost never worth buying. While it might only be $125, it's a totally wasted cost for most situations IMO. Exceptions would be for divorced, bankruptcy or estate sales. You can easily track down the info on your own with the estoppel letter and simple website search with limited info on the seller. I don't subscribe to the theory that it's only a little bit so why bother. I don't ever recall hearing of anyone having to use it with a timeshare and certainly not for DVC.

 

[disneynutz]

I'll disagree with Bill on this one. IMO it's almost never worth buying. While it might only be $125, it's a totally wasted cost for most situations IMO. Exceptions would be for divorced, bankruptcy or estate sales. You can easily track down the info on your own with the estoppel letter and simple website search with limited info on the seller. I don't subscribe to the theory that it's only a little bit so why bother. I don't ever recall hearing of anyone having to use it with a timeshare and certainly not for DVC.

All I said is that it seems to be the norm to buy title insurance.

With my luck I would pass on it and I would have title issues.

I'm the guy that buys contracts just before the price goes down and sells them just before the price goes up.

Bill

 

[Dean]

All I said is that it seems to be the norm to buy title insurance.

With my luck I would pass on it and I would have title issues.

I'm the guy that buys contracts just before the price goes down and sells them just before the price goes up.

Bill

I'm there with you from a luck standpoint though my usual luck doesn't seem to have carried over to timeshares for some reason. I've narrowly missed large special assessments on several occasions. In part, I gave a more complete answer knowing discussions that have come through on this topic previously. I also disagree that it's the norm with timeshares or even truly with DVC. It's somewhat like extended warranties on electronics. For a given transaction it would depend on the situation, vibe, size, and what my due diligence found. Add to that the only real issue is getting DVC to put it in your name, once that happens, the risk of having an issue is dramatically low even without a recorded deed.

 

[networktek]

when we did ours with Fidelity we did not have a choice Title insurance was included in the closing cost.

 

[twinsouvenirs]

We are having the same--title insurance is included with the closing costs--but there is an area where we can decline said insurance. Title ins. is definitely the norm with real estate, but really only 1st mortgages--at least in my state, even HELOCs (Home Equity/2nd Mortgages) many times don't get more than a limited lien search. I'm wondering if we should just decline because it's essentially a waste of money--the only reason it wouldn't be is if the title company didn't close the transaction correctly, which frankly I would be more likely to catch than a title agent based on my history with real estate (my husband and I realized that the legal description on our proposed deed was wholly inaccurate, and I was helping out a friend and had to explain to EVERYONE involved that the wife needed to sign too even though he purchased it while he was unmarried.)

That said, I would be willing to throw the cash at it if there were even one story about title issues--I just don't see them here.

 

[Dean]

when we did ours with Fidelity we did not have a choice Title insurance was included in the closing cost.

Partly because they make money on it.

We are having the same--title insurance is included with the closing costs--but there is an area where we can decline said insurance. Title ins. is definitely the norm with real estate, but really only 1st mortgages--at least in my state, even HELOCs (Home Equity/2nd Mortgages) many times don't get more than a limited lien search. I'm wondering if we should just decline because it's essentially a waste of money--the only reason it wouldn't be is if the title company didn't close the transaction correctly, which frankly I would be more likely to catch than a title agent based on my history with real estate (my husband and I realized that the legal description on our proposed deed was wholly inaccurate, and I was helping out a friend and had to explain to EVERYONE involved that the wife needed to sign too even though he purchased it while he was unmarried.)

That said, I would be willing to throw the cash at it if there were even one story about title issues--I just don't see them here.

There are situations and costs where I'd do it, most I wouldn't. DVC (at least VB, HH & WDW) are easy to do due diligence on and most contracts will be a single owner who's selling. If it appears more complicated and it's a significant amount of money, I'd consider it. The main risk that can't be checked out well otherwise is the developer themselves and with Disney this is not the same risk it is for some other timeshares. I wonder if those who buy direct think it's a reasonable additional expense.