Title Insurance for Timeshare

Title insurance in the timeshare industry is similar to title insurance for a home or other property purchase. Title insurance is optional for the buyer of a timeshare in order to protect them from financial loss due to undeclared liens, title defects, overdue maintenance fees, or other issues that may obstruct the transfer of property ownership. It may or may not be necessary depending on a number of factors, which is why it is important to understand exactly what it is and how it works.

Today the timeshare market is full of people who are desperate to sell their properties. Unfortunately,title insurance many organizations that claim to help with these sales are not properly licensed to deal with real estate matters. As a result, proper procedures are often not followed, which can affect the transfer of ownership of a deeded timeshare property, leaving the buyer unprotected from unexpected difficulties. While the average timeshare resale transaction usually does not encounter such issues, it is a good idea to consider insurance just in case.

When considering title insurance for a timeshare, you must determine who exactly you are buying the property from. If you are not buying directly from the original owner, the timeshare may be at higher risk for title defects, and would therefore be a stronger candidate for insurance. It is usually safer to purchase a timeshare either from the original owner or from a new developer, especially if you choose not to purchase insurance. After all, the main purpose of title insurance is to ensure that the seller of the timeshare has the right to sell it and that there are no issues with the title that would affect the transfer from their name to yours. Purchasing title insurance will also serve as proof to a buyer that the title is clear, should you decide to sell it in the future.

Title insurance can range from $200-$500, depending on the amount being insured, and only protects you up to the purchase price, not typically covering closing costs. In the end, it comes down to how much you are willing to spend to protect your timeshare investment and how much security you want.

Timeshare Deedbacks

We recently received the following submission from one of our users regarding their timeshare property at Orange Lake Resort and Country Club in Florida:

We bought our timeshare 21 years ago and used it to exchange vacations in other resorts. It was a good experience but now that my wife has passed away and I am older, trying to unload the resort proves difficult. I am willing to surrender my title to the resort but the warranty deed does not say a word about releasing me from all obligations; I have to take their word that after the title reverts to the resort they will close the account and I will have no obligations. Anyone have any thoughts or comments about this predicament?

Here we will discuss the concept of deedbacks–signing the deed of your timeshare property back over to its owner, relieving you of any ownership rights, fees, and other obligations. If you no longer want your timeshare and have been unable to sell or donate it, deeding it back to the resort may be an option, but only under a special set of circumstances.

You first must determine if your timeshare is deeded or leased. A deeded timeshare binds you to the contract as an exclusive owner, while a leased timeshare means you are only the owner for a certain number of years. If you have a leased timeshare, you may not be able to get out of it until the lease expires, but always check with your contract for details. deedbacks

Perhaps one of the most important things to understand about a deedback program is that the recipient of the property (in this case, the resort) must be willing to accept it and give you permission to deed it back. You cannot deedback your property to an unwilling recipient. If you attempt to do so by signing a quit claim deed to the resort owner without permission, it will not be considered a legal transaction and you will still be liable for paying the maintenance fees.

To qualify for a deedback, most resorts require that all maintenance and special assessment fees are paid in full; they generally will not accept if you are behind in fees or have a mortgage on the property. Even if you are up to date on all your payments, it is not uncommon for the resort to refuse a deedback, in part because so many people are taking advantage of this option. But there’s only one way to find out if the resort will accept a deedback: you have to ask!

Be aware that you may need to dedicate some time to being on the phone until you reach the appropriate person to talk to, which is usually not the first person to pick up the phone. Stay focused and calm during this process. If the resort refuses to accept a deedback, you may be able to sell it back to them for a fraction of the timeshare’s market value. Again, just ask. It might not be the most ideal option, but it’s probably better than spending thousands more dollars on a property you don’t use or want.

Westgate – Blue Tree Orlando

We purchased our timeshare at Westgate Blue Tree July 2012. It sounded fantastic. They basically promised us the earth. During the selling pitch they presented us with mounds of paperwork and was told you don’t have to read all this just sign and read it when you get home. They did not mention about the 10 day cooling off period.

Destination Club Memberships

When we arrived home I decided to get the brief case full of paperwork out, after hours of trying to read the very small print I said to my husband I am not happy with this timeshare it is not what they promised us. We decided to pay the monthly mortgage.

After a few months we tried to book a week at the Westgate Lakes, Lake Buena Vista, The price was unbelievably expensive, it was no where near the prices that we was shown on their computer ie. $124 per week for 4 people.

We looked into flights, Westgate said they could get 25% off the price of flights from our local airport, all lies!!!

Well to cut a long story short we decided after several phone calls and letters to Westgate explaining we could no longer afford to pay for the time share because my husbands hours at work had been reduced and I can not work, they told us just to stop paying, we cant be hounded for payment because we did not give then our NI numbers.

We have had phone call after phone call, letter after letter, our account have now gone to a collections agency. We are starting to panic. Please can anyone give us true advice as to what we should do next.

Buying this timeshare sounded so wonderful, we could pass it on to our children it would be a good family investment, LIES…

They just wanted our money.