• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 30 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 30th anniversary: Happy 30th Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $21,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $21 Million dollars
  • Sign up to get the TUG Newsletter for free!

    60,000+ subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

[ 2005 ] Should I purchase title insurance?

Wishiwasatthebeach

TUG Member
Joined
Jun 21, 2005
Messages
101
Reaction score
0
Points
16
I read the basic 101 and other articles on the internet, but would still like to pose the question.

At which sales price range is it worth it to purchase title insurance if it costs $225 in addition to closing cost? I plan to pay $4K for the unit.

Let's say if not purchased, and there are liens & taxes against the unit, what happens?

Thanks,
 

Dave M

TUG Lifetime Member
Joined
Jun 16, 2004
Messages
12,242
Reaction score
12
Points
623
Location
Sun City Hilton Head, SC
There's no single answer to your question. Experience has shown that most purchasers here would not purchase title insurance for the purchase you are considering. However, there are exceptions. Doing your due diligence ( www.tug2.net/advice/purchase_checklist.htm ) might turn up some information that would suggest you purchase the insurance.

Is it likely that there are mortgage loans, liens or delinquent taxes? No. Most timeshare loans are consumer loans rather than mortgage loans tied to the timeshare. Liens of any kind are rare. Even more rarely are liens attached to a timeshare. Taxes attach to individual timeshare ownerships in only a few states, California being the most notable.

However, if you purchase the timeshare and later find out that there are attachments, you risk foreclosure and loss of your ownership rights, unless you pay off the amounts due.
 

bogey21

TUG Member
Joined
Jun 8, 2005
Messages
9,455
Reaction score
4,660
Points
649
Location
Fort Worth, Texas
In addition to purchase price and your own due diligence I would consider from whom I'm buying the week. Do you know them personally? If you don't know them, what is their reputation, etc?
 

Harry

TUG Review Crew
TUG Member
Joined
Jun 13, 2005
Messages
808
Reaction score
32
Points
388
Location
Az."Lawful:(adj.)The will of the judge"
Title insurance is just that, insurance if there is a problem with the title. There are many timeshares that have foggy titles. So, just as Dave said, it depends. I would look to see who developed the property, where it was developed etc. Then, I would look at my to make sure they have a clean title (no liens, no spousal problems etc.). Then I would make my decision. In the properties I have purchased, the answer to your question is no.
 

Hatrack

TUG Member
Joined
Jun 6, 2005
Messages
382
Reaction score
0
Points
16
Location
CO
The problem with Timeshare title insurance is that it's outradgeously expensive relative to what they're insuring. When you buy a new house, title insurance of $1000 to $2000 insures the entire $200k (or $1 million house).

If the title insurance industry were proportionate.....something like 0.5% of the value of your $4k purchase would say it "should cost" $20 for them to offer the same insurance. (I think you're seeing $20 worth of insurance and $200 of administrative overhead in such a small policy).

I've bought $500 to $3000 Timeshares without title insurance. I once bought it when $300 insured a $35000 block of TS I bought.

As said above, your own due dilegence investigation can rule out lots of problems.

Here's the way to think of it. If you had a choice of two identical weeks for sale, one is offered for $4000 and one has title guarenteed for $4225, which do you want? You might get by with the $4000....but only you can decide whether saving $225 is worth this unknown risk.

Hat
 

DeniseM

Moderator
Joined
Jun 6, 2005
Messages
57,603
Reaction score
8,992
Points
1,849
Resorts Owned
WKORV, WKV, 2-SDO, 4-Kauai Beach Villas, Island Park Village (Yellowstone), Hyatt High Sierra, Dolphin's Cove (Anaheim)

SMHarman

TUG Member
Joined
Jan 14, 2013
Messages
4,171
Reaction score
86
Points
183
Location
NY NY
Title insurance is just that, insurance if there is a problem with the title. There are many timeshares that have foggy titles. So, just as Dave said, it depends. I would look to see who developed the property, where it was developed etc. Then, I would look at my to make sure they have a clean title (no liens, no spousal problems etc.). Then I would make my decision. In the properties I have purchased, the answer to your question is no.
If the US had a better UK Land Registry type process for recording title then Title Insurance could just go away.
 

DeniseM

Moderator
Joined
Jun 6, 2005
Messages
57,603
Reaction score
8,992
Points
1,849
Resorts Owned
WKORV, WKV, 2-SDO, 4-Kauai Beach Villas, Island Park Village (Yellowstone), Hyatt High Sierra, Dolphin's Cove (Anaheim)
Top