Resale - Has anyone passed on Title Insurance?

[Curiousporpoise]

We recently passed ROFR on a resale contract that we will pay for in cash. Our broker and escrow agent are asking if we would like Title Insurance, and they mentioned that we don’t need it since we are not using financing.

The TI cost is pretty high, almost the same as our closing costs. The escrow agent said it will take approximately 8 weeks for a title search, which seems long, but I’ve never purchased DVC before. This would delay our estimated closing date by several weeks, but I’m willing to move that back to be safe.

Any thoughts on this? If I was purchasing directly from Disney, I would pass on TI, but this seems too risky.

 

[macman123]

If its resale I would. I think insurance should only be around $150 or so......

 

[Jimmy Geppetto]

We recently passed ROFR on a resale contract that we will pay for in cash. Our broker and escrow agent are asking if we would like Title Insurance, and they mentioned that we don’t need it since we are not using financing.

The TI cost is pretty high, almost the same as our closing costs. The escrow agent said it will take approximately 8 weeks for a title search, which seems long, but I’ve never purchased DVC before. This would delay our estimated closing date by several weeks, but I’m willing to move that back to be safe.

Any thoughts on this? If I was purchasing directly from Disney, I would pass on TI, but this seems too risky.

I've declined title insurance when buying Direct, but will always purchase it when buying resale. It would be a massive headache if the previous owner had a lien against the deed that was missed in the closing process.

 

[sndral]

I’m curious who your broker/escrow agent is & which resort you’re buying since I’m surprised they’d offer that type of ‘advice.’ Depending on how many points you’re buying Title insurance adds a dollar or two per point to your purchase & for me it’s worth that de minimus amount to protect me from issues arising should the closing company make a mistake or the sellers have undisclosed issues impacting their ownership.
I always pay cash & w/ my resale purchases I always buy title insurance. IME it never caused closing to be delayed & there was no 8 week delay due to searching title.
I follow the ROFR & closing threads here on Dis & I’ve never read of an extra delay of 8 weeks due to purchasing title insurance.
https://www.disboards.com/threads/closing-time-2021-and-2022-edition.3836891/page-107
https://www.disboards.com/threads/r...-instructions-formatting-tool.3888303/page-94

 

[Curiousporpoise]

If its resale I would. I think insurance should only be around $150 or so......

For some reason they quoted $500 for title insurance. The $150 fee seems a lot more reasonable. Maybe it’s more expensive because it’s Hawaii?

 

[Curiousporpoise]

I've declined title insurance when buying Direct, but will always purchase it when buying resale. It would be a massive headache if the previous owner had a lien against the deed that was missed in the closing process.

Yes, I definitely agree and will be purchasing it. I have no idea what I would do if there’s a title issue and I didn’t purchase title insurance.

 

[CarolMN]

Broker probably meant that it wasn't REQUIRED. But I agree with everyone that it's absolutely worth having. The extra time & $$ MAY be unique to Hawaii.

 

[Curiousporpoise]

I’m curious who your broker/escrow agent is & which resort you’re buying since I’m surprised they’d offer that type of ‘advice.’ Depending on how many points you’re buying Title insurance adds a dollar or two per point to your purchase & for me it’s worth that de minimus amount to protect me from issues arising should the closing company make a mistake or the sellers have undisclosed issues impacting their ownership.
I always pay cash & w/ my resale purchases I always buy title insurance. IME it never caused closing to be delayed & there was no 8 week delay due to searching title.
I follow the ROFR & closing threads here on Dis & I’ve never read of an extra delay of 8 weeks due to purchasing title insurance.
https://www.disboards.com/threads/closing-time-2021-and-2022-edition.3836891/page-107
https://www.disboards.com/threads/r...-instructions-formatting-tool.3888303/page-94

This is great information. I read through several pages of the thread, and noted closing dates at the same home resort that closed in a “normal” timeframe with no extra delays. I also saw the escrow agent listed a few times (on different home resorts) and it looked like they close DVC properties pretty quickly as well. It is adding about $2.5 a point for title insurance, and after reading everyone’s comments, I will definitely be purchasing it.

 

[Curiousporpoise]

Broker probably meant that it wasn't REQUIRED. But I agree with everyone that it's absolutely worth having. The extra time & $$ MAY be unique to Hawaii.

I think you’re right. For a brief second I thought about passing on title insurance, but after thinking about all the things that could go wrong, I will be purchasing it. The extra time and fees are probably due to everything being more expensive and taking a bit longer in Hawaii.

 

[discreet]

Initially I wasn't offered to buy the title insurance. I asked for it and I got it. The title company replaced the $125 Title Search fee with $200 Title Insurance fee. So it was an extra $75 for a contract of 100 points at AKV. No extra wait. They just sent me an updated document right away.