DVC T&E will not close a contract without requiring the buyer to pay Title Insurance. They are the same as most title companies. It’s a revenue generator for them so it’s hard to point any fault to them, however you can close with other companies who outsource the title insurance and allow it as an option and it is NOT mandatory. These companies (that I am aware of) are TRCS Inc. and LT Transfers. I’ve not used LT Transfers but have heard they are great too. TRCS Inc has been amazing and if you see my prior posts you will see I am very hard/critical on Title companies.
When a contract is purchased directly from Disney there is little to almost no risk of a title issue being a problem. DVC sells the contact with free and marketable title. When that seller (the one who bought direct) sells the contract, Disney will issue estoppel certificate which will ensure there are no dues or outstanding liens on the contract. Based on this, if there were any title issues, they’d be identified prior to closing and estoppel would NOT be issued so you are protected as the buyer, thus making title insurance of no value to you. HOWEVER if the seller (who bought direct), sold it to a buyer and that buyer subsequently sells it again, there is a heightened risk of title issues being present. In this scenario I always purchase title insurance.
It’s a personal preference based on your risk appetite. You will hear many say “better safe than sorry” which can be true, again it’s a personal preference but if you talk to the Brokers, and those who are very familiar with DVC, they will all tell you it has no value when buying direct, or when buying from a seller who bought direct.
Your broker can easily pull the deed for you to determine if it was bought direct. You can also pull it from comptroller website once you have the seller’s names.
Hope this helps! And good luck with BLT purchase.