So if I understand right, a warranty deed without title insurance, merely puts the recourse back on the seller to fulfill the obligations of the sale. Instead of having an insurance company pay me for the failure of seller to provide a free and clear title.
A Warranty Deed ALWAYS puts the recourse back on the seller. The seller is the one making the Warranty. That is what you want.... A Quit Claim Deed if you break down the meaning of it is as follows... I Quit (another word for give) Claim (another word for interest) Deed, I give you any interest THAT I MAY HAVE. Notice it does not say I have any interest, but if I do it is yours.
A Warranty Deed on the other hand says I Warrant (guarantee) that I possess good any lawful title and that I Warrant to you that I have the authority to sell and I Warrant to you that there are no liens that effect this Deed.
Now, I am no lawyer, but that is the simplest way to put it. Also, Talent is correct, you can not purchase title insurance on a Quit Claim Deed. Why.... because the seller may not really own the property that is subject to the deed. Remember the seller is only giving you any interest they may have, might have, might have had, might someday have. How do you issue a title policy on something that might not be there's?
As a closing company, I truly dislike Quit Claim Deeds. Prefer never to use them and always prepare a warranty deed for my new buyers with 1 exception. If the seller took title on a Quit Claim Deed, the seller would have a hard time going back to defend the warranty of title back to the original title holders, HOWEVER that being said, if a title search is being done by a professional AND the chain of title is properly documented and established a "Special" Warranty Deed can be given. If no title search is being done, then a Quit Claim would be in order to the new buyer.
A Special Warranty Deed basically says I can warrant as long as I have owned this that I have the right to sell, it is free of all liens etc, but I do not warrant what has happened in the past to the chain of title. A Special Warranty Deed is insurable for title insurance.
A side note to this is that a closing company can do a warranty deed from a quit claim deed, I have seen those, but understand the new seller who just got the warranty deed is now the one that has to defend title if thiere is an issue and has no recourse on prior sellers as there are no warranties to rely on. That is a buyer beware issue.
My biggest complaint with these kitchen type closing companies is they often lack the proper licensing, bonds, E&O etc and the proper knowledge and skills to do title work. This is not to say that all of them are bad, but it raises a lot of red flags when you have the seller who "owns" the closing company who can not be found as a true closing company and then they do Quit Claim Deeds and tell people how wonderful they are.
As far as calling to the resort to verify that the resort has no liens on the property, that is good, estoppels works for that liens that the resort might have placed against the unit, BUT as we have discussed before, there are other matters like probates, tax liens etc that come up in the chain of title that the resort may not know about, so it is a gamble if you rely on just the estoppel from the resort.
I would hate to buy a timeshare or anything else for that matter and find out the seller has a tax lien or judgment that clouds my title and that to sell it the judgment has to be paid off by me since I took it subject to the lien or judgment.
The resort only knows about liens they have created. Not what owners have had levied against them.