Warranty Deed & Title Insurance questions.

[SpikeMauler]

Hi,
I was recently sent closing paperwork for the Timeshare I'm purchasing on St. Thomas(resale). Included in the paperwork was a "Special Warranty Deed" for the sellers to sign. Are Special Warranty Deeds the norm for closings? From what I read, it seems a General Warranty Deed would be in my best interest. Is this something I should be concerned with? I was also told by a couple of brokers that Title Insurance wasn't needed(they said the Estoppel letter was enough). I paid $15,000 for the week I purchased. Should I consider taking out Title Insurance? How many people here have taken out or not taken out Title Insurance? Do you think an Estoppel letter is enough?
Thanks

 

[BM243923]

I would be more concerned about the price you paid for the week. If you can cancel this deal do so. You paid way too much. Did you buy from a developer or a resale.

Try and get out of the deal if possible.

 

[sernow]

You should definitely get title insurance paying this amount.

 

[SpikeMauler]

I would be more concerned about the price you paid for the week. If you can cancel this deal do so. You paid way too much. Did you buy from a developer or a resale.

Try and get out of the deal if possible.

Resale. It's a Marriott Frenchman's Cove Platinum week. I paid 40% of the retail price.

 

[Talent312]

A special warranty deed gives you recourse against the seller for any encumrances or liens that may have been caused by the seller, but does not promise you that the title if free of any and all defects.

I'd check the contract (if there was one) or other paperwork to see if says what sort of deed I'd be getting. If anything said "general warranty deed," then I'd insist on it. But otherwise, I wouldn't get my nose out of joint. I might ask the closing agent why they didn't do one, but it could be that SWD's are the local custom.

An estoppel letter only protects you from claims by the party issuing the letter, and not from third-party claims which might arise from cases of divorce, probate, bankruptcy or other legal actions. But if the seller held title in his name for a several years and their are no claims of record against him, I'd say that the risk would be small and likely forego TI myself. YMMV.

 

[SpikeMauler]

A special warranty deed gives you recourse against the seller for any encumrances or liens that may have been caused by the seller, but does not promise you that the title if free of any and all defects.

I'd check the contract (if there was one) or other paperwork to see if says what sort of deed I'd be getting. If anything said "general warranty deed," then I'd insist on it. But otherwise, I wouldn't get my nose out of joint. I might ask the closing agent why they didn't do one, but it could be that SWD's are the local custom.

An estoppel letter only protects you from claims by the party issuing the letter, and not from third-party claims which might arise from cases of divorce, probate, bankruptcy or other legal actions. But if the seller held title in his name for a several years and their are no claims of record against him, I'd say that the risk would be small and likely forego TI myself. YMMV.

Thanks Talent. The contract states "Seller shall convey by Warranty Deed to Buyer". The resort is fairly new(I think 2 yrs old). Odds are the sellers are the original owners.