Buying a home in Lakeside is exciting, especially when that home is near Flathead Lake. Along with inspections and financing, you also want to protect your ownership from hidden issues that might surface later. Title insurance is one of the simplest ways to do that, yet many buyers are unsure how it works. In this guide, you will learn what title insurance covers, which endorsements matter for lakeshore property, and exactly what to review before you close. Let’s dive in.
What title insurance does for you
Title insurance protects you against financial loss and legal defense costs caused by title defects that existed before your closing but were unknown at that time. It is a one-time premium paid at closing. Title insurance is not like homeowners or auto insurance. It does not cover future events unless you add specific endorsements.
There are two policies involved. An Owner’s policy protects your equity and ownership rights, usually in the amount of the purchase price. A Lender’s policy protects the mortgage lender’s interest, usually in the amount of the loan. If you are paying cash, you will not have a lender’s policy, so the owner’s policy becomes your main risk protection.
What is covered and what is not
Covered risks vary by policy terms, but they often include things like forged or fraudulent deeds, undisclosed heirs, errors in public records, improperly recorded documents, and liens that were not discovered during the title search. Policies can also cover clerical errors in the chain of title and some encumbrances that appear after closing if they relate back to a covered defect.
Most policies exclude future zoning changes, acts of government, environmental contamination, and matters listed as exceptions or shown in public records. This is why your title commitment and the list of exceptions matter.
Know the commitment and exceptions
Early in your transaction, the title company issues a title commitment. Think of it as a roadmap to the policy you will get at closing. It contains:
- Schedule A: who and what is being insured, including the property’s legal description and policy amounts.
- Schedule B: exceptions, which are items the insurer will not cover unless cleared or endorsed.
Read Schedule B carefully. Easements, covenants, or unresolved liens often show up here. You can sometimes resolve or insure around exceptions before closing. If something looks unclear, ask the title officer for an explanation in plain language.
What it costs and who pays in Lakeside
The premium for each policy is a one-time charge at closing. The owner’s policy is typically based on the purchase price. The lender’s policy is based on the loan amount. Who pays for the owner’s policy can vary by county and custom. In Flathead County, payment practices can differ by transaction, so confirm current local custom with your agent or the title company during negotiations.
Lakeside-specific title risks to watch
Buying on or near Flathead Lake comes with standard title risks plus lakefront and rural nuances. Here are the common items you should review.
Shoreline rights and lake access
Littoral and riparian rights relate to your ability to access the lake and place docks or ramps. What you have depends on your deed language, recorded easements, and local or state rules. In some situations, the state may own the lakebed or manage a public access line that affects improvements. Review your deed, any recorded dock or boat easements, and permits for any docks or shore structures.
Easements and road access
Many Lakeside parcels rely on private roads and shared drives. Recorded road easements and maintenance agreements may impose obligations on owners. Utility easements, shared wells, and rights-of-way for neighbors can also limit use. Expect these to appear as Schedule B exceptions and review them before you close.
Boundaries, surveys, and encroachments
Older lakeshore properties sometimes lack modern surveys. Lot pins get moved or lost, fences drift, and docks or sheds can encroach onto a neighbor’s parcel. Shorelines can also shift with high or low water, which changes what people assume about boundaries. A current survey is best. If a new survey is not feasible, ask about a survey-related endorsement and consider site-specific inspections.
Water rights, wells, and septic systems
Montana follows prior appropriation for water rights. That means water-use rights are separate from surface ownership. Confirm whether any water appropriation or irrigation rights are attached to the property and how they transfer. For on-site wells, verify permitting, registration, and any shared well agreements. For septic systems, confirm permit history and get inspections. Drain fields and setbacks can limit where you build or expand.
Taxes, assessments, and liens
Delinquent property taxes, special district levies, and contractor or mechanic’s liens can attach to a property and may survive transfer if not cleared. Have the title company check tax status and ask for proof of releases for any recorded liens or judgments.
HOAs, covenants, and local zoning
Covenants, conditions and restrictions can control docks, setbacks, and architectural choices. Local shoreland rules and county regulations can impose additional limits. Before you make plans for a boathouse, guest space, or rental use, review CC&Rs and applicable county regulations for shoreline development.
Probate, heirs, and chain of title
Lakeside properties sometimes pass through estates or family transfers. If probate steps were missed or an heir was not disclosed, it can cloud title. A careful title search should trace older transactions and confirm any needed releases.
Tribal or treaty interests
In parts of Montana, historic tribal or treaty rights may affect use or access in certain contexts. If a property is near historic ceded areas, the title company should verify any recorded interests.
Environmental constraints
Wetlands, protected habitats, and conservation easements can limit development or dock placement. Ask the title company to identify any recorded restrictions and confirm whether permits were obtained for existing improvements.
Smart endorsements for lakeshore homes
Endorsements add coverage for specific risks. Availability and pricing can vary by title company and state rules, so ask what is offered in Montana and which endorsements are recommended for your specific parcel. For Lakeside and Flathead Lake, consider:
- Survey or Boundary endorsement, especially if you do not have a recent survey.
- Access endorsement, if access relies on a private road or easement.
- Easement endorsement, when recorded easements affect your use.
- Zoning or Use endorsement, if you want added assurance about unrecorded violations.
- Endorsements related to restrictions, plats, or water rights, where available and applicable.
Your pre-closing checklist
Before you close, gather and review these items:
- Title commitment, including Schedules A and B. Note every exception.
- Deed and chain-of-title records for the last 30 years, or longer if advised by the title company.
- Current survey or boundary survey. If none, consider ordering one.
- Plat maps and any subdivision covenants or CC&Rs.
- Property tax statements and history.
- Septic and well permits and inspection reports.
- Permits for docks, bulkheads, retaining walls, or other shoreline structures.
- Recorded easements and any maintenance agreements for private roads or shared infrastructure.
- Hazard or floodplain information and any flood insurance requirements.
- Seller disclosures and inspection reports.
- Proof of releases for any mortgages, mechanic’s liens, or judgments.
Questions to ask the title company
- What exceptions are on Schedule B, and how will you clear them before closing?
- Is there a recent survey? If not, can I get a survey-related endorsement or should I order a new survey?
- Are there recorded easements affecting lake access, dock placement, or road maintenance?
- Which endorsements do you recommend for a lakefront parcel in Flathead County, and what do they cost?
- Are any liens, taxes, or judgments open against this property?
- What is the exact premium for the owner’s policy, and who typically pays it here?
- If a covered defect shows up after closing, what is the claims process and expected timeline?
Questions to ask your agent
- Has the seller provided dock permits, septic and well records, and any maintenance agreements?
- Who maintains the private road, and is there a written cost-sharing agreement?
- Are there known boundary concerns, encroachments, or use limitations with neighbors?
- Which surveyors and title companies are best for Flathead Lake shoreline properties?
- Is the parcel in a floodplain or shoreland overlay that could impact permits or insurance?
- Do HOA rules or CC&Rs limit docks, rentals, or home improvements?
At-closing checks
- Confirm the final title policy or commitment and verify that Schedule A matches your contract and legal description.
- Check the deed for the correct legal description and exact spelling of your name.
- Confirm purchased endorsements and that exceptions were handled as agreed.
- Obtain copies of the recorded deed and any recorded releases.
- Collect claims and contact information for the title company and insurer.
- Verify tax proration and any special assessments are settled according to the contract.
Timeline tips for Lakeside and out-of-state buyers
- Order the title commitment early, ideally during your inspection or contingency window, so you have time to resolve issues.
- If you need a survey, order it right away. Surveys can take time and may reveal items that affect negotiations.
- If you are out of state, coordinate remote notarization, wire procedures, and ID verification with the title company to avoid delays.
- Keep digital copies of all title-related records. You may need them later for permits, insurance, or resale.
Local offices and resources to know
You or your title company may work with several local offices to verify records and permits:
- Flathead County Clerk and Recorder for deeds, easements, and recorded plats.
- Flathead County GIS and parcel mapping for boundary and parcel references.
- Flathead County Planning and Zoning for shoreland development rules and permits.
- Flathead County Treasurer or Tax Office for tax status and special assessments.
- Flathead City-County Health Department for septic and well permitting or inspections.
- Montana Department of Natural Resources and Conservation for water rights and state-managed submerged lands.
- Montana Commissioner of Securities and Insurance for state-level consumer information on title insurance.
The bottom line for Lakeside buyers
Title insurance is a simple, one-time step that can protect your ownership and your equity, especially on properties with shoreline, private road access, or older survey histories. Read the title commitment, focus on Schedule B exceptions, and ask for endorsements that fit a lakeshore home. Pair that with careful due diligence on surveys, water and septic records, and dock permits, and you will head to closing with confidence.
If you want a local strategy for a specific Lakeside property or an extra set of eyes on your title commitment and endorsements, reach out to Corey Olofson. You will get clear, practical guidance backed by deep Flathead Valley experience.
FAQs
What is the difference between an owner’s and a lender’s title policy?
- An owner’s policy protects your equity and ownership rights, usually for the purchase price. A lender’s policy protects the lender’s interest, usually for the loan amount.
Who typically pays for the owner’s policy in Flathead County?
- Payment customs vary by market and even by transaction. Confirm current practice in Flathead County with your agent or title company during negotiations.
Which title endorsements are most important for a Flathead Lake home?
- Common choices include survey or boundary, access, easement, and zoning or use endorsements. Ask your title company which endorsements are available and recommended for your parcel.
How do Montana water rights affect my purchase near Flathead Lake?
- Montana uses prior appropriation, so water-use rights are separate from land ownership. Confirm any existing water rights, well permits, and how they transfer before closing.
Do I really need a survey for a Lakeside property?
- A current survey is strongly recommended. Older lots can have shifted pins, fence drift, and dock encroachments. If you do not get a new survey, discuss survey-related endorsements with the title company.
What should I check on Schedule B of the title commitment?
- Look for easements, covenants, and any liens or assessments. Ask which items will be cleared before closing and which will remain as policy exceptions.
