• 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!

Title Insurance

AgelessTravel

TUG Member
Joined
Jul 21, 2011
Messages
333
Reaction score
17
Points
228
Location
Ontario, Canada
Resorts Owned
SDO
Is title insurance necessary when purchasing a timeshare for $160? Does the insurance only protect the purchase price of the timeshare? The seller guarantees clear title to every timeshare they sell, how do I confirm the title is clear?

If there is an outstanding loan or lien etc. would the reseller be able to transfer the timehshare? How do I guarantee I will not be liable for any outstanding liens against the previous owner?
 
Last edited:

vacationtime1

TUG Review Crew: Veteran
TUG Member
Joined
Sep 7, 2006
Messages
5,212
Reaction score
2,814
Points
649
Location
San Francisco
Resorts Owned
WKORV-OF (Maui)
WKV x2 (Scottsdale)
Is title insurance necessary when purchasing a timeshare for $160? No

Does the insurance only protect the purchase price of the timeshare? Correct; that is the reason for my answer above.

The seller guarantees clear title to every timeshare they sell, how do I confirm the title is clear? You would have to do a title search which would cost almost as much as title insurance; not worth it on a $160 purchase.

If there is an outstanding loan or lien etc. would the reseller be able to transfer the timeshare? Yes; you would take subject to the lien

How do I guarantee I will not be liable for any outstanding liens against the previous owner? Get an estoppel certificate from the HOA or manager (not from the seller).

See my answers interlineated above. The bottom line is on a cheap purchase, you can afford to take title risks; the estoppel will inform you about unpaid MF's or assessments.

My own practice is not to buy title insurance on purchases of less than $10,000 or so -- and there are few timeshares worth $10,000 at this point.
 

ronparise

TUG Member
Joined
Feb 10, 2011
Messages
12,664
Reaction score
2,134
Points
548
You ask "how do I confirm the title is clear?"

You dont, there is no guarantee. . Title insurance is just that; insurance. Car Insurance doesnt guarantee that you wont wreck your car, Health Insurance doesnt guarantee that you wont get sick and life insurance doesnt quarantee that you will live forever

Title insurance doesnt guarantee clear title. Its there to pay off and/or protect you if the title isnt clear.

If the premium paid is more than the potential loss I question the value
 

AgelessTravel

TUG Member
Joined
Jul 21, 2011
Messages
333
Reaction score
17
Points
228
Location
Ontario, Canada
Resorts Owned
SDO
See my answers interlineated above. The bottom line is on a cheap purchase, you can afford to take title risks; the estoppel will inform you about unpaid MF's or assessments.

My own practice is not to buy title insurance on purchases of less than $10,000 or so -- and there are few timeshares worth $10,000 at this point.

I thought only the owner can request an estoppel letter? Can the closing company also request this on my behalf. The closing company is Resort Closing Inc. I've left a message with the resort, hopefully they will get back to me.
 
Last edited:

AgelessTravel

TUG Member
Joined
Jul 21, 2011
Messages
333
Reaction score
17
Points
228
Location
Ontario, Canada
Resorts Owned
SDO
Just heard back from the resort, they will not release the information with the current owner's permission.
 

TUGBrian

Administrator
Joined
Mar 24, 2006
Messages
22,277
Reaction score
7,914
Points
1,099
Location
Florida

vacationtime1

TUG Review Crew: Veteran
TUG Member
Joined
Sep 7, 2006
Messages
5,212
Reaction score
2,814
Points
649
Location
San Francisco
Resorts Owned
WKORV-OF (Maui)
WKV x2 (Scottsdale)
Just heard back from the resort, they will not release the information with the current owner's permission.

Some resorts (e.g. Starwood) will only release an estoppel to an escrow company. There is no legal basis for this.

But if the seller refuses to authorize the release of an estoppel, I would stay away from the deal; I would assume the seller has something to hide.
 
Top