Buying and selling timeshare involves lots of decision making, and at every aspect of the procedures involved all parties will want to ensure that they are getting the best deal. Anyone involved in timeshare, and even those who might not be, may already be aware that some people operate within the industry without the best intentions – making it even more important than ever to ensure the wisest decisions are made at all times.
Many people looking to safeguard their timeshare investment, whether buying or selling, decide to take out title insurance for a timeshare. Title insurance can protect a timeshare in many ways. It works in a similar way to the title insurance a person might take out when buying property or land.
For someone buying timeshare, title insurance can help to protect them against any monetary loss that may incur due to undeclared liens, title defects or other aspects that might impede the transfer of property ownership. In many cases, where an owner has decided ‘now is the time to sell my timeshare’, they may be eager for a quick sale. In some instances the seller may get involved with organisations that do not have the correct licence to sell their property. If proper procedures are, therefore, not followed, it can impact on the transfer of ownership of the timeshare. Having title insurance can protect the buyer however, especially if there are any taxes or fees overdue or any title defects. It normally protects up to the purchase price.
Taking out title insurance can also be a good idea for those buyers who are not fully aware who they are buying from, especially if the property has been frequently transferred. The more a property has been sold on, the higher the risk of any title defects, for instance. Properties that are also sold by bulk resellers may also come with increased risk, so taking out the insurance would be a good investment. On the other hand, if you buy direct from a new developer or the original owner, the risk of any title defects diminishes.
As well as being beneficial to the buyer of timeshare, taking out title insurance can be a blessing for the seller as well. It can offer them protection in certain cases where they come up against fraudulent or scamming activity. In particular, one of the most common timeshare scams involves an organisation contacting a seller telling them they have buyers waiting, but they need to pay for a title search first. This is usually a large sum of money. Sellers should not have to pay for this at the outset of proceedings, so having title insurance can offer added security for those who want to fully safeguard the sale.
Ultimately, whether you take this insurance out depends on a number of factors and how much security you want when buying or selling timeshare, but if you are looking to avoid scams and fraud, it can help to offer a degree of protection.
- Monday, 05 January 2015 11:57