Title Insurance

[skibikegokf]

We are about done with our purchase of a Lagoon Tower 2Br plus.

The last hold up is title insurance. I've been told it may take another 2-3 weeks to get the Title Insurance, which may cause problems with this years points if we don't close.

The Escrow company has the Lot and Book report on the timeshare, and it is clean -- no liens. The Estoppel letter is clean, all maintenance fees and club dues are current.

Additionally, the Title Insurance has just recently increased from $180 to $355.

My question to ya'll who are so unbelievably knowledgeable, do I really need the title insurance if the Lot and Book report is clean, and the Estoppel letter is clean?

Thanks

 

[rjp123]

I didn't get title insurance when I bought my unit. Mind you, it didn't cost anywhere near what a HHV 2BD+ unit would.

Entirely your choice.

 

[phil1ben]

I don't understand why there would be such an increase. Most states regulate the premium and would not approve such an increase. That being said the higher number appears about right including the search and premium. I would buy (and did buy) title insurance for the following reasons:

1. If someone questions your title it is a small price to pay for coverage.
2. It prevents any issues should you decide to sell
3. It insures the closing is properly completed i.e. your deed is correctly recorded and indexed, any mortgage or lien is paid off.
4. It confirms and insures that no judgment obtained against the Seller is superior to your deed.


In a nutshell it prevents headaches later. Lastly, I see no reason why this should delay a closing by three weeks.

 

[phil1ben]

I don't understand why there would be such an increase. Most states regulate the premium and would not approve such an increase. That being said the higher number appears about right including the search and premium. I would buy (and did buy) title insurance for the following reasons:

1. If someone questions your title it is a small price to pay for coverage.
2. It prevents any issues should you decide to sell
3. It insures the closing is properly completed i.e. your deed is correctly recorded and indexed, any mortgage or lien is paid off.
4. It confirms and insures that no judgment obtained against the Seller is superior to your deed.


In a nutshell it prevents headaches later. Lastly, I see no reason why this should delay a closing by three weeks.

 

[Talent312]

IMHO, since Hilton has confirmed the identity of the owner, no liens + current payments, and they are who determines its use, I'd forego the title insurance. Not so for a house where no one keeps track, or a two-bit management of questionable trustworthiness. But HGVC runs a tight ship and I'd trust them to know what they're doing.

This is just what I'd do, and should not be relied upon as legal advice, which I am not qualified to render.

 

[bogey21]

Why spend the money for Title Insurance when there is a good chance the Week will be next to worthless 10 years from now. Think back to those people who paid $25k to $35k for Weeks 10 years ago, bought Title Insurance, and are lucky to be able to sell them for $3k today.

George

 

[PamMo]

I'm curious how long it took to get an estoppel letter from HGVC? We have been in the buying stage for awhile now at the Bay Club (resale), and still haven't received the estoppel letter. It's been a complicated process with multiple parties involved, so I'm not sure what the delay is due to? I would love to know how long it usually takes!

 

[Harry]

The good ol title question

I have been gone from TUG for almost 2 years. This question continues to crop up since the old days. It is all about risk, resort reputation and peace of mind. I never get title insurance. However, I would never recommend that you go without it unless you have some special title background in law or real estate.
Responding to PamMo Hawaii is very slow in processing everything. As a long time owner at the Bay Club I would suggest some patience here. It will come. By the way Congrats on your purchase. We have loved the Bay Club since 1998.

Harry