Full Close or Record the Deed?

[DJensen]

looking at purchasing a TS in Williamsburg and the resale company (GMAC) noted there are two different "closings". One that includes the full closing title insurance and recording of the deed (as high as $850). The second is a matter of recording the deed and is about half the cost (around $400). Which is better? What do most of you resale purchasers select?

Thanks

 

[richardm]

Title Insurance or not.....

In my experience, most resale buyers outside of Florida do not purchase a title policy because of the cost difference...

However- that said ----------

I always recommend a title search and policy be obtained for every transaction as the safest means to obtain ownership. If you accept a warranty deed only- your only recourse if there is a later problem is to sue the individual seller (not the brokerage or agent- but the actual owner of the property that signed the warranty deed)... The cost and process involved with this make it very unlikely....

Whatever you choose- best of luck with your purchase and enjoy your vacations!

 

[Talent312]

looking at purchasing a TS in Williamsburg and the resale company (GMAC) noted there are two different "closings". One that includes the full closing title insurance and recording of the deed (as high as $850). The second is a matter of recording the deed and is about half the cost (around $400). Which is better? What do most of you resale purchasers select?

Some folks will say that you'd be foolish not to go full-board and get title insurance -- which gets you a title search, MF + tax verification, an estoppel letter from the resort, and an affidavit of no liens from the seller.

Others will say that, since you are dealing with a fairly reputable company which will stand behind its sale, that its an unnecessary expense. I would do my own due diligence, verify a few things with the resort, from the public records and the tax collector's office. IOW, under these circumstances, I'd prob'ly "go naked." The question for you is, how comfortable are you with doing that?

 

[Bill4728]

Title insurance will not pay to clear up a problem they find. They will only pay you to be whole again. So if your paying <$1,000 for the TS, the extra $400 is a waste of money since the most the title insurance will pay you is $1000. But if you're paying >$5,000 it may be worth the extra peace of mind.

IMHO, I'd never pay it.

 

[yumdrey]

case by case

Among my 4 TS, I purchased only 1 title insurance, and it was for Hilton (HGVC). I purchased other 3 TS from the brokers who guaranteed clear title or give refund. HGVC was from an individual seller through ebay, and I am glad that I purchased title insurance for this TS. During closing process, title company found out so many problems from this account, including late MF (2008 maintenance fee was not paid yet), collection company involved, etc...
Closing process was taking longer than I thought, and seller had to sign extra papers to solve this problem. All problem was solved by title company so I didn't have to deal with it, and finally I got a copy of new deed today.
Ask GMAC if they guarantee clean title (or give full refund), and if they don't, and the purchased price is expensive, I would recommend title insurance.