Why do you need title insurance when you buy property?


Iimg_506e2325d2e50_WEB Sturgeon RIver SideLake_noth of chisholmf you are buying recreational property, paying attention to the title work that’s done as part of the transaction is important. Title work covers the property lines, access and ownership history of any given parcel. You get insurance in case something is overlooked or creates issues after the purchase.

Easements can be complicated. There may be issues with access. Or you could be working with a title company that isn’t doing a thorough job, which might lead to issues later.

With this in mind, here are five things for you to know from Michelle Reponen of Carlton County Abstract & Title in Cloquet, Minn., and from Deb Kline of First American Title in Baxter, Minn., who do title work for properties sold by Potlatch.

  • By the time you are closing on the property, make sure all easements and relevant details about the land have been recorded. An experienced real estate broker can help in checking this.
  • Expect to pay for title insurance as part of the closing fees, though for Potlatch sales, Potlatch covers the cost of title search, which can save the buyer as much as $300-$400.
  • It’s important to use a reputable title company with years of experience. If there is an issue later, you need to be able to go back to the title company for help. And avoiding legal challenges is important in ensuring that you aren’t out thousands of dollars in legal fees to find a resolution to an issue.
  • It’s also a good idea to work with a title company that knows the area you are buying in. As one example, title work in some areas of Minnesota includes dealing with mineral rights – a topic that title companies in other parts of the country might not know much about.

The brokers in Potlatch’s Preferred Broker Network are experts in the various facets of a recreational property sale, so as you are looking at Potlatch property, they will be glad to walk through the entire sales and closing process with you.

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