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Do I need title insurance for ebay purchase?

L

LBTRS

TUG Member
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Nov 1, 2009
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Location
Goodyear, AZ
Hello,

New to timesharing and recently purchased two Wyndham Points contracts off of ebay. Both are from the same seller and the closing is being handled by Timeshare Closing Services in Orlando FL. I paid only closing cost and resort transfer fee.

My question is, should I spend the $300 for each contract ($600 total) for title insurance on the two contracts? The ebay description stated both titles are free of any encumbrance.

Is spending another $600 necessary for a transaction like this?

Thanks in advance.
 
$600 Worth Of Insurance On $600 Worth Of Timeshares ?

LBTRS said:
Is spending another $600 necessary for a transaction like this?
Click to expand...
I would skip title insurance.

Full Disclosure: We skipped title insurance on all our resale timeshares -- 2 from eBay & 1 from a broker & 2 from private-party sellers. If a valid claim against title surfaces in the future & we lose ownership, that will be no big deal.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
 
AwayWeGo said:
I would skip title insurance.

Full Disclosure: We skipped title insurance on all our resale timeshares -- 2 from eBay & 1 from a broker & 2 from private-party sellers. If a valid claim against title surfaces in the future & we lose ownership, that will be no big deal.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​
Click to expand...

Other than DVC and a couple of others can you imagine someone making a claim to try and get a timeshare back from you? :hysterical:
 
The title insurance people have the option of paying to clear the title or just refunding you the purchase price. Which do you think they would do?

You'll be paying $300 and get insurance which at the max will pay you back the purchase price of $1.00


Skip it.
 
Bill4728 said:
The title insurance people have the option of paying to clear the title or just refunding you the purchase price. Which do you think they would do?

You'll be paying $300 and get insurance which at the max will pay you back the purchase price of $1.00


Skip it.
Click to expand...

Oh, I'm not understanding title insurance then. What would happen if this closed and I was notified there was a $30K mortgage outstanding. I assumed they would want me to pay the $30K or ruin my credit and have them foreclose on the ownership. Wouldn't title insurance protect me from this?

Thanks.
 
LBTRS said:
Oh, I'm not understanding title insurance then. What would happen if this closed and I was notified there was a $30K mortgage outstanding. I assumed they would want me to pay the $30K or ruin my credit and have them foreclose on the ownership. Wouldn't title insurance protect me from this?

Thanks.
Click to expand...

NO, as I said they will do one of two things, clear the title or refund your purchase price.

They will refund your purchase price of $1.00

BUT they will research the title and tell you if there is a $30K mortgage
 
Bill4728 said:
NO, as I said they will do one of two things, clear the title or refund your purchase price.

They will refund your purchase price of $1.00

BUT they will research the title and tell you if there is a $30K mortgage
Click to expand...

Sorry for the questions...when you say "research the title" is this if I pay them the $300 for the title insurance or is this part of the closing?

Thanks for your help.
 
A title search is usually not part of the closing, although some companies will guarantee a clear title anyway.

If there is a $30,000 mortgage against the TS, the loan is in the name of who ever took out the loan - the loan would not transfer with ownership - the loan and the property are two different things. On a $1 timeshare, your max. loss is $1, so you don't need title insurance.

Note that it is possible that you could lose the deal - but for $1, you just wave bye bye. Within the last year I bought a cheap TS on ebay and didn't find out until the deed was recorded, that the resort had foreclosed on it, and the owner did not have the right to sell it. I was irritated, but I got my $90 back and moved on. I'm glad I didn't pay $300 to get my $90 back.
 
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you could be obligated to pay a pre-existing mortgage is someone slips this type of language in the deed:

"By accepting this Deed, the grantee assumes and agrees to pay the existing mortgage on the real estate and indemnify Grantors therefrom"
 
ctyatty said:
you could be obligated to pay a pre-existing mortgage is someone slips this type of language in the deed:

"By accepting this Deed, the grantee assumes and agrees to pay the existing mortgage on the real estate and indemnify Grantors therefrom"
Click to expand...


That is correct and a lot of these companies and many individuals here on TUG recommend skipping the closing process and just type the deed as the old one was, would contain such language.

The other to watch for that I have seen and we make sure we take it out is in the "subject to" language. It will read something like

Subject to the following:

Taxes for the current and subsequent years,
Conditions restrictions etc
Declaration of Condominium
Mortgages and liens securing the purchase money mortgage

That is why just copying the old deed is not really such a good idea...
 
Here we go again

Through the years we have all gone over this numerous times. It depends on the type of property you have and the past owners, including the original one. If you feel the developer was not a flake and all previous owners were conscientious and had no legal problems including but not limited to marital unrest and all easements, and legal entanglements either never existed or were remedied, then forget title insurance. On the other hand, if you do not know any of this, are purchasing an average to fair timeshare (not high end) with considerable turnovers, then you may want to consider it. Many of us have seen people badly hurt who have failed to obtain title insurance simply to save money.
I have never obtained it. But I do my own title searches (something I learned years ago). I also somehow know my way around court houses. So good luck and do what you feel is best.

Note to Denise: 14000 posts. Wow. And some of us remember when you were a newbie.
 
ctyatty said:
you could be obligated to pay a pre-existing mortgage is someone slips this type of language in the deed:

"By accepting this Deed, the grantee assumes and agrees to pay the existing mortgage on the real estate and indemnify Grantors therefrom"
Click to expand...


This is very true...This happened to a friend of mine and her and her husband were furious! But can't be all that mad...we are all responsible for reading what we sign!
 
Harry said:
Through the years we have all gone over this numerous times. It depends on the type of property you have and the past owners, including the original one. If you feel the developer was not a flake and all previous owners were conscientious and had no legal problems including but not limited to marital unrest and all easements, and legal entanglements either never existed or were remedied, then forget title insurance. On the other hand, if you do not know any of this, are purchasing an average to fair timeshare (not high end) with considerable turnovers, then you may want to consider it. Many of us have seen people badly hurt who have failed to obtain title insurance simply to save money.
I have never obtained it. But I do my own title searches (something I learned years ago). I also somehow know my way around court houses. So good luck and do what you feel is best.

Note to Denise: 14000 posts. Wow. And some of us remember when you were a newbie.
Click to expand...

It sounds as if you are suggesting that you make the decision on title insurance based on what you are spending for your TS. I am in the process of purchasing a Marriott TS in Palm Desert. What I would believe is a high end TS. But have no knowledge about the person selling, so choose to go the title search route. Was I not on the right path in my thinking?
 
MountainGal said:
It sounds as if you are suggesting that you make the decision on title insurance based on what you are spending for your TS. I am in the process of purchasing a Marriott TS in Palm Desert. What I would believe is a high end TS. But have no knowledge about the person selling, so choose to go the title search route. Was I not on the right path in my thinking?
Click to expand...

Sounds like a solid strategy to me. Always best to be in the know.
 
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