Do we need Title Insurance when buying direct?

[MikeOhio]

The justification for me is that spending $187 to protect issues against my 53k purchase for 100% guarantee I don’t have to worry about issues was well worth it.

So, I don’t agree that the cost of the purchase is irrelevant. I would not spend $187 to cover something that I can just replace for $200…

Again, personal choice but to me, it was worth the peace of mind, no matter how small the likelihood is I need it.

Title insurance companies love this attitude.

I will offer you insurance for $100 that I will pay you $100k in the event you are bitten by a shark and struck by lightning at the same time. That way you will have peace of mind that you will be covered because as you said "no matter how small the likelihood is" makes it worth the cost.

The simple answer is that no one should be buying title insurance on a direct purchase. It's worth less than toilet paper. Title insurance on a resale at least makes sense.

 

[Robbie Cottam]

Title insurance companies love this attitude.

I will offer you insurance for $100 that I will pay you $100k in the event you are bitten by a shark and struck by lightning at the same time. That way you will have peace of mind that you will be covered because as you said "no matter how small the likelihood is" makes it worth the cost.

The simple answer is that no one should be buying title insurance on a direct purchase. It's worth less than toilet paper. Title insurance on a resale at least makes sense.

I go sharking fishing every summer
can I buy that insurance

 

[garegco]

I'm not sure if this has happened to others or not, but I elected NOT to buy title insurance on my direct purchase. A couple of weeks later, a title insurance policy was still issued and emailed to me.

 

[Robbie Cottam]

I'm not sure if this has happened to others or not, but I elected NOT to buy title insurance on my direct purchase. A couple of weeks later, a title insurance policy was still issued and emailed to me.

congratulation, looks like you won the lottery....

 

[Sandisw]

Title insurance companies love this attitude.

I will offer you insurance for $100 that I will pay you $100k in the event you are bitten by a shark and struck by lightning at the same time. That way you will have peace of mind that you will be covered because as you said "no matter how small the likelihood is" makes it worth the cost.

The simple answer is that no one should be buying title insurance on a direct purchase. It's worth less than toilet paper. Title insurance on a resale at least makes sense.

And the great thing is that I get to make the decision to buy and others get to decide they don’t need it.

No reason anyone should judge someone else for making the choice they are comfortable with simply because they came to a different conclusion on its value.

 

[Jimmy Geppetto]

Not my point. People were using the excuse in the total price that it was a small line item as justification. That is a horrible way to think about it. That is the same way car dealers get you to pay for the nitrogen in tires.

What you paid for the contract should have no bearing on your decision to purchase or not purchase the insurance. Obviously, this is a personal risk tolerance issue and can't be answered by any but OP. But things we can all agree on:

* No one has ever used the title insurance with a direct purchase that we know of
* The possibility of any one person needing the insurance is well less than 1% and probably less than 0.01%
* The cost of the insurance compared to the cost of the contract should have no bearing on the purchase of the insurance

This!! Bang on!

 

[Rex1993]

We're getting pretty far afield of the actual questions posed by the OP. I am not a licensed attorney in FL so I'm not giving legal advice but take a look at your actual documents and you will read the plain language that says the following:

"DVD hereby covenants with the Purchaser that DVD is lawfully seized of the Ownership Interest; that DVD has good right and lawful authority to sell and convey the Ownership Interest; and that DVD warrants the title to said Ownership Interest and will defend the title against the lawful claims of all persons claiming by, through or under DVD"

DVD is providing a warranty deed here and thus it is DVD who has the responsibility for providing clear title to you as purchaser. I took the title insurance on my direct VGF purchase last month but I didn't want to and see no reason for someone else to do it. The only reason I did was because it took so damn long for them to process my paperwork that if I asked for them to correct it again, I was at risk of running out the clock on Magical Beginnings for my August use year.

I certainly understand the sentiment about it being a small cost in the relative scheme of things and that it gives some piece of mind. Unfortuantely that "piece of mind" is made based on a fundamental misconception about how title policies actually work in practice and how DVD handles the direct sales.

To answer the OPs original question: If you sell later down the line, the purchaser then can decide if they want title insurance. As part of the escrow process the title company will uncover pretty much any defect. If one is discovered that resulted from the purchase from DVD, DVD has the obligation to correct.

I'm just going to say it, title insurance is a complete racket. Is it necessary in most situations involving western states real property? Yes. However, it is pretty much the only insurance where the insurance company actively determines with 99% accuracy that they have no risk in issuing the policy, before they actually issue the policy. And then even if they do issue the policy and there is an undiscovered defect, they will make it their mission not to actually pay anything on the policy. Title insurance is really an arhaic concept in the age of digital record keeping. It made sense when deeds were typed out on typewriters and physically walked into the recorders office. When you had to have someone go down to the recorders office and go through files looking for typos and stray recordings there was a service and corresponding cost that was quantifiable. Not so today.

 

[GoingSince1990]

Only if you are worried that if Disney accidentally sold you non-existent points, their attitude would be “too bad, no trips for you”. An absolute waste of money if buying direct.

 

[Anthony1971]

I don’t recall being offered the option to buy Title insurance when we bought 20 years ago. There was also no closing costs or better DVC covered all as there are always filing fees involved so I am guessing title insurance was included. I recall of all things having to sign and have a no pet policy notarized. Just always found that funny being nothing else had to be notarized.
Yes we did buy it with our house purchases my cousin did the closing for us but also got us on our last house.

 

[Maistre Gracey]

I hope I NEVER to actually use any of the insurance policies I buy.

…..

Especially life insurance

 

[Maistre Gracey]

If Disney is selling an uncleared title, you’ve got bigger problems with DVC.
I’m not even sure how that’s possible.

 

[Robbie Cottam]

If Disney is selling an uncleared title, you’ve got bigger problems with DVC.
I’m not even sure how that’s possible.

So poor broke tribe will come along and claim the land was stolen,

And the don’t want it back just to be paid what is worth today

 

[take36]

…..

Especially life insurance

Unfortunately that is one insurance we all going to have to cash in one of these days! That's why DVC is precious, we only got so many years here and I want to spend it some of it at Disney with my loved ones.

 

[Stargazer65]

I'm really bad, I didn't even look at the fees I was paying for on the contract, just the rebates. So I bought Title Insurance by default. Contracts and fees are boring, DVC points are fun. Salespeople see me coming for miles, and love me.

Thankfully they didn't add on dealer prep, rustproofing, and freight charges as well.

 

[Cfabar1]

I believe years ago DVC just gave away the title insurance and didn't make owners purchase it. Now they do charge for it.

Frankly, I think DVC should just "self insure" and include it with direct.... That said, we did purchase it, mostly because I didn't feel it was worth the time to ponder and question whether I needed it or not given the relatively small cost.

 

[Sandisw]

I believe years ago DVC just gave away the title insurance and didn't make owners purchase it. Now they do charge for it.

Frankly, I think DVC should just "self insure" and include it with direct.... That said, we did purchase it, mostly because I didn't feel it was worth the time to ponder and question whether I needed it or not given the relatively small cost.

When I first bought, there were no closing costs, so not only did we not pay title, we didn’t pay the other costs either…other than maybe a $50 fee.

 

[MyDogTink]

Stupid question. When is the title policy sent? I thought it was in the closing document package I received via DocuSign but it’s not there.

 

[Cfabar1]

When I first bought, there were no closing costs, so not only did we not pay title, we didn’t pay the other costs either…other than maybe a $50 fee.

I really think they should go back to doing that... It just feels like nickel and diming...

 

[Sandisw]

I really think they should go back to doing that... It just feels like nickel and diming...

While it was nice, it doesn’t bother me because it’s still a real estate transaction and someone pays those costs.

 

[Jimmy Geppetto]

Stupid question. When is the title policy sent? I thought it was in the closing document package I received via DocuSign but it’s not there.

Usually 4 weeks after closing.