Does your property have insurable access? Does the property your looking to purchase? If you don’t know, you should. The answer will greatly affect the value of the property. Insurable access means that a Title Company will insure that the property has legal deeded road access. This can be through recorded easements or if the property adjoins a public roadway. Just because there is a road leading to a parcel does not mean it has insurable access. If the property does not have road frontage on a public road, it needs to have deeded easements across every property between it and the public road.
The issue of access has always been a major factor when determining property values, but it has really become the major concern for Buyers, Sellers, Title Companies, and Real Estate Brokers. Much of this stems from the recent changes to the lending industry. Banks are more hesitant than ever to take risk and lending on a property without insurable access is a risk. Because of this, it has become almost impossible to obtain financing for properties without insurable access. If a Buyer cannot obtain financing, the property will have a more limited pool of Buyers to choose from which greatly reduces the chances of selling. Even if you are a cash buyer, it is important to understand this issue as it affect property values.
Unfortunately, much of the land base in the Upper Peninsula and many of the listed properties, do not have insurable access. In some cases this can be remedied by obtaining easements, but that process can be time consuming and expensive. Some access situations are virtually impossible to remedy to the point that would make them insurable. It is very important to understand this issue and the impact it has if you are buying or selling a property. A search of title can show whether or not a property’s access is insurable and it is suggested to do this prior to listing or buying any property. For more information on this subject or your specific situation, please contact one of our experienced Agents.