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Timeshare Title Insurance

Discussion in 'Buying, Selling, Renting' started by armrecsys, Oct 3, 2017.

  1. armrecsys

    armrecsys TUG Member

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    Hi , I am in escrow buying another timeshare.
    I have purchased other timeshare before with out buying tittle insurance.
    The one I am buying now I have called the timeshare to make sure they are owners and got a copy of the deed. What will tittle insurance do.
    Please help, escrow closing soon.
     
  2. brianfox

    brianfox TUG Member

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    Title insurance will take a big chunk of money from your wallet.

    It essentially does a title search and guarantees (to a point) that no liens or title disputes are on the property. If you got a copy of the deed, you are ahead of the game, and are probably fine. I presume you did a deed lookup for the state in which the property exists.

    Most people here don't bother with title insurance. The exception may be if you are buying a very expensive piece of property.
    I just completed three Marriott Hawaii purchases using no insurance. No problems. Insurance would have been about $400 per deed.
     
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  3. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Any kind of insurance is something you don't think you need until you need it. Many people buy homes without buying title insurance, but lenders will always required a lenders title policy to protect their interest. With any real estate transaction, you need to consider the risk vs the cost.
     
  4. TUGBrian

    TUGBrian Administrator

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  5. vacationtime1

    vacationtime1 TUG Member

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    +1

    If title insurance costs $250/deed and there is a 1% chance of a covered title defect, one shouldn't buy title insurance unless the purchase price is >$25,000.

    Remember that title insurance only covers title issues. Title insurance does not cover unpaid MF's, wrong use years, etc. You protect yourself on those kinds of issues with an estoppel -- which is a lot cheaper than title insurance and far more likely to disclose the kinds of problems we deal with in the timeshare universe. I bought title insurance on my WKORV-OF purchase but I have demanded estoppels on every unit I have ever purchased.
     
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  6. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    It will cover unpaid MFs if there has been a lien filed against the property for those unpaid fees.
     
  7. icydog

    icydog TUG Review Crew: Expert TUG Member

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    Every DVC contract I’ve bought or sold required Title Insurance. I thought it was a requirement from the developer but it turns out the closing companies automatically add it on. I guess for big ticket timeshares they don’t want to mess around. On my Marriott’s, I think I was asked but I don’t remember if I took it out.
     
  8. Saintsfanfl

    Saintsfanfl TUG Member

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    The only way they can make you buy title insurance is if you are financing and even then it would be a required lender policy and not an owner policy. It's the same with a house. Often times with a house the buyer pays for the lender policy and the seller pays for the owner policy.
     
  9. Saintsfanfl

    Saintsfanfl TUG Member

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    Not if the lien is known and already occurred. It would be discovered in the search. Also, wouldn't unpaid fees be part of the search? This is done with a house purchase.
     
  10. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    Correct, if they find the lien. A title insurer won't issue a policy unless the lien is paid off at the time of transfer. If they don't find the lien, then they would cover it. A title insurer wouldn't have any way to validate unpaid fees. If there are unpaid HOA fees on a condo, does title insurance cover or find those?
     
  11. Saintsfanfl

    Saintsfanfl TUG Member

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    No I don't think the insurance covers unpaid HOA or COA fees. It's the title company that checks for the fees rather than the insurance but checking is an easy process. It's basically a finance estoppel like with a timeshare. An HOA I was recently at that would bill monthly would get inquiries on a regular basis for any unpaid fees. This way any unpaid balances would be covered as part of the settlement.
     
  12. Saintsfanfl

    Saintsfanfl TUG Member

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    I think title insurance covers unknown encumbrances. Something like unpaid fees that should be discovered by the title company but are missed should be covered by the title company's insurance if it came to that.
     

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