Indiana

General Procedures and Information

Method of Issuing Title Insurance

Title agents and approved attorneys issue title insurance policies and related forms. Pursuant to I.C. 27-1-15.6-3, a person shall not sell, solicit, or negotiate insurance in Indiana for any class or classes of insurance unless the person is licensed for that line of authority. See I.C. 27-1-15.6-6 and 27-1-15.6-7 for specific requirements for a person or business entity to obtain a title insurance producer's license. Applicants for a title insurance producer's license must attend a certified two day pre-licensing course for title insurance producers that includes not less than ten (10) hours of instruction in a structured setting or comparable self-study on: (i) ethical practices in the marketing and selling of title insurance; (ii) requirements of the insurance laws and administrative rules of Indiana; (iii) principles of title insurance, including underwriting and escrow issues; and (iv) principles of the federal Real Estate Settlement Procedures Act (12 U.S.C. 2608. See 27-1-15-7.5. b) To renew a license issued under IC 27-1-15.6, a limited lines producer with a title qualification under IC 27-1-15.6-7(a)(8) must complete at least fourteen (14) hours of credit in continuing education courses related to the business of title insurance with at least one (1) hour of instruction in a structured setting or comparable self-study in each of the following:

(1) Ethical practices in the marketing and selling of title insurance.
(2) Title insurance underwriting.
(3) Escrow issues.
(4) Principles of the federal Real Estate Settlement Procedures Act (12 U.S.C. 2608).

An attorney in good standing who is admitted to the practice of law in Indiana and holds a license issued under IC 27-1-15.6 with a title qualification under IC 27-1-15.6-7(a)(8) may complete all or any number of hours of continuing education required by this subsection by completing an equivalent number of hours in continuing legal education courses related to the business of title insurance or any aspect of real property law. See 27-1-15.7-2.

An insurance producer license application may be obtained at http://www.ai.org/idoi/agent_licensing/. The application fee is $40.00. The Indiana Department of Insurance will not split checks. If you are licensing more than one person, you must submit individual checks.

On December 6, 2005, the Indiana Department of Insurance issued Bulletin 135 requiring any person that conducts a real estate closing on behalf of a title insurance producer or a title insurance company in which a title insurance policy is issued or to be issued must be licensed. The mandatory licensing requirement includes mobile and and witness closers. Lenders who close their loans are exempt from the licensing requirement. The insurer for which the closing activities are performed is responsible for insuring that the closer is properly licensed. An insurer's failure to require a person to be licensed under the bulletin guidelines is considered an unfair method of competition under statutory law and is subject to administrative action. Any person who is not licensed and is required to be licensed is also subject to administrative action under 27-1-15.6-12. The Department has granted a six (6) month grace period to title insurers and producers in order to comply with this bulletin and obtain licensing.

References
Related Bulletins:

IN000015   New Title Insurance Licensing Requirements and Closer Responsibilities

Foreclosures

Foreclosures are judicial in Indiana.

For specific questions, contact Indiana underwriting personnel.

References:

Related Bulletins: None.

Corporate Directory: Indiana Contacts.

Redemption Rights

The owner of part owner of the real estate may redeem the property at any time before foreclosure sale in accordance with the procedure set forth in I.C. 32-29-7-7.

Survey Standards

Stewart Title Guaranty Company does not require a survey for deletion of the survey exception in loan policies on 1-4 residential properties and commercial properties with liabilities of $10 million or less. Residential properties are defined as subdivision lots and acreage tracts of twenty-five acres or less. For issuance of a 1992 ALTA owner's policy for residential land Stewart Title Guaranty does not require a survey to give extended coverage as to survey matters in Owner's Policies covering 1-4 family residential property in platted subdivisions, if the title company includes specific exceptions for matters (such as specific encroachments) actually known by the title company and if the title company secures the STG Affidavit Concerning Encroachments and Property Boundary Issues (1) from the seller. Stewart Title Guaranty does not require a survey to issue the 1998 ALTA Homeowner's Policy or Stewart's Residential Short Form Loan Policy; please see Bulletins MU000030, MU000036, and MU000035 for affidavits and requirements. Stewart Title Guaranty does not require a new survey for commercial owner's policies if a prior survey of any date is provided to the title company and the title company secures the STG Affidavit Concerning Encroachments and Property Boundary Issues (1) from the seller.

References
Related Bulletins:

MU000028   Survey Requirements - Loan Policies

MU000030   Guidelines for HOMEOWNER'S POLICY OF TITLE INSURANCE (To Be Issued On Single Family Residential and Condominiums Only Located On Platted Land)

MU000035   This Bulletin has been replaced by MU2007001.

MU000036   Questions Concerning the HOMEOWNER'S POLICY OF TITLE INSURANCE (To Be Issued On Single Family Residential and Condominiums Only On Platted Land)

MU000038   This Bulletin has been replaced by MU2007002.

Document and Form Information

Acknowledgments

These are the standard forms of acknowledgment:

  • IN Acknowledgment-Individual 1
  • IN Acknowledgment-Corporation 1

Conveyances

The customary form of conveyance is the IN Deed-Warranty 1. Other common forms of conveyance include the following:

  • IN Deed-Warranty (Limited or Special Corporation) 1
  • IN Deed-Quitclaim 1
  • IN Deed-Quitclaim (Corporation) 1
  • N Deed-Personal Representative's 1
  • IN Deed-Administrator's 1

Witnesses are not required on conveyances executed in Indiana.

According to Indiana Code Section 32-21-2-5, conveyances acknowledged in another state outside of Indiana are entitled to be recorded in Indiana as long as the acknowledgment is accompanied by the official seal of the officer or notary taking the acknowledgment. The Uniform Electronic Transactions Act (IC § 26-2-8-101 et seq.) governs "electronic record or electronic signatures created, generated, sent, communicated, received, or stored after June 30, 2000.

Indiana law requires a sales disclosure form to be completed when a deed quitclaim deed or any document presented for recording purports to transfer a real property interest for valuable consideration. A county auditor may not accept a document if a complete sales disclosure form and fee (currently $10.00) is not submitted with deed or document conveying the real estate interest. The sales disclosure form is pursuant to IC § 6-1.1-5-5 and is State Form 46021. A copy of the last revised form of State Form 46021 (R5/6-05) is available at www.in.gov/dlgf/ . Click on Forms.

Effective March 24, 2006, State Board of Accounts, County Form 170, is no longer required to be attached to a document for recording. See I.C. 36-2-7.5-5.  Effective March 24, 2006, the county recorder will charge an additional two dollar ($2.00) county identification security protection fee per document recorded or UCC filed with the County Recorder. See I.C. 36-2-7-10;I.C. 36-2-7.5-6. This fee is in addition to the customary fees for recording documents. Effective July 1, 2006, any document recorded or UCC filed with the county recorder must contain the following affirmation: "I affirm, under the penalties of perjury, that I have taken reasonable care to redact each Social Security number in this document unless required by law (name)". See I.C. 36-2-11-15.  The person who actually prepared the document for recording does not have to be the same person  who signs or affixes their name to this affirmation. As a result, an employee of a title company handling the recording of documents may sign or affix their name to the affirmation rather than the person shown on the face of the document to be recorded as the preparer.   Additionally, the affirmation requirement is not applicable to a 1)judgment, order or writ of court; 2) a will or death certificate; 3) an instrument executed or acknowledged outside Indiana; or a 4) a federal lien on real or personal property.  See I.C. 36-2-11-15; I.C. 36-2-11-25.

References
Related Bulletins:

IN000016   This Bulletin has been replaced by IN000021.

Releases/Satisfactions

The standard release form used in Indiana is the IN Release of Mortgage 1.

Security Instruments

The customary security instrument is the mortgage.

Witnesses are not required on mortgages executed in Indiana.

According to Indiana Code Section 32-21-2-5, mortgages acknowledged in another state outside of Indiana are entitled to be recorded in Indiana as long as the acknowledgment is accompanied by the official seal of the officer or notary taking the acknowledgment. The Uniform Electronic Transactions Act (IC § 26-2-8-101 et seq.) governs ?electronic record or electronic signatures created, generated, sent, communicated, received, or stored after June 30, 2000.

Title Insurance Form Regulations

Title insurance policy forms and endorsements are not required to be filed in Indiana. Stewart Title Guaranty Company prescribes the use of the standard ALTA policy and endorsement forms for use in Indiana.

References:

Forms List: Indiana Forms.

Fees, Rates and Taxes

Deed Transfer Taxes and Documentary Stamps

Indiana does not have deed transfer taxes or documentary stamps.

References:

Related Bulletins: None.

Mortgage Transfer Taxes

Indiana does not have a mortgage tax.

Real Estate Taxes

Real estate/ad valorem taxes are paid in two installments. The first installment is due on May 10th. The second installment is due on November 10th.

Recording Fees

Recording fees for a deed vary between $7.00 to $10.00 for the first page and $2.00 for each additional page. Recording fees for a mortgage vary between $6.00 to $9.00 for the first page and $2.00 for each additional page. Recording fees for a release are $5.00 for the first page and $2.00 for each additional page.  Effective March 24, 2006, the county recorder will charge a two dollar ($2.00) county identification security protection fee for recording a document or filing a UCC. This fee is in addition to the customary fees for recording documents.

Search and Examination Fees

In most areas, search and examination fees are included in the premium. However, if search and examination fees are charged, they are customarily paid by the seller.

Title Insurance Rates

Title insurance rates are not filed in Indiana.

The seller customarily pays for the owner's policy and the purchaser pays for the loan policy.

For specific information, contact Indiana underwriting personnel.

References:

Corporate Directory: Indiana Contacts.

Spousal Rights

Spousal Rights

The estates of dower and curtesy were abolished in 1953 pursuant to I.C. 29-1-2-11.

Indiana is not a community property state.

I.C. 29-1-2-3.1 provides that a married man may deed or mortgage his real estate without the joinder of his wife.

I.C. 31-11-7-2 provides that a married woman has the same rights as an unmarried woman concerning the conveyance of real property.

Statute Of Limitations

Statute Of Limitations

Judgment liens have a limitation period of 10 years after the entry of the judgment pursuant to I.C. 34-55-9-2.

Indiana state tax liens have a limitation period of 10 years from May 10th of the year the taxes become due pursuant to I.C. 6-1.1-22-13, or 10 years from the date a tax lien or tax warrant is filed pursuant to I.C. 6-8.1-8-2. The department may renew the lien for an additional 10 years by filing an alias tax warrant.

Real Estate Practices

Attorney Involvement

Please describe any requirements under applicable state law for attorney, abstractor or other special professional involvement, for example, in the search, examination, opinion of title, signing, closing, disbursement, recording, preparation of documents, and/or policy-issuance.

Deeds, power of attorneys, and other legal documents that involve legal consequences of actions must be prepared by an attorney. See State v. Indiana Real Estate Association, Inc. 191 N.E. 2d 711 (1963 Ind.) State of Indiana Ex Rel. Ind. State Bar Ass’n v. Northouse, 848 N.E. 2d 668 (2006 Ind.)  Only persons and entities who are licensed with the Indiana Department of Insurance may conduct a “real estate closing” defined as “activities to determine proper execution, acknowledgment and delivery of all conveyances, mortgage documents, and other title instruments necessary to consummate a transaction; activities to ensure consideration has been passed and all proceeds have been properly accepted and properly disbursed or the preparation of settlement or closing statements in connection with a transaction” See Department of Insurance Bulletin 135.

Cancellation/Commitment Fee

Does your state permit or require a cancellation fee or commitment fee upon cancellation?

A cancellation fee is permitted in Indiana.

Certificate of Release (of Mortgage)

If anyone other than the lender (such as a title agent, settlement agent, underwriter or attorney) has the authority to release the security instrument, please describe.

Yes. A duly appointed agent of a title insurance company may execute a Certificate of Release that complies with the requirements of the mortgage release statute set forth at Indiana Code 32-29-6-1 et seq. For all practical purposes, it gives a title company the ability to release mortgages up to an original principal amount of not more than $1,000,000.00 that the agent paid off as part of the agent's settlement or closing of a new purchase or refinance. The title insurer (such as Stewart Title Guaranty) must record a Notice of Authorization in each county in which the insurer’s title agent wants to record a Certificate Of Release. If a mortgagee or a mortgage servicer fails to record a release within sixty (60) days after the agent's transmittal of the mortgage payoff, a duly appointed agent can execute and record a Certificate of Release of the mortgage. Prior to executing and recording the Certificate of Release, a duly appointed agent must send to the mortgagee or the mortgage servicer, a written notice of the agent's intent to execute and record a Certificate of Release in thirty (30) days.

Deeds

Please describe the kinds of deeds that are customary for commercial and residential transactions.  Please describe the kinds of deeds that are generally not insurable.

A warranty deed is customary for residential transactions. A warranty or special/limited warranty deed is customary for commercial transactions. Insuring a quitclaim deed is generally not insurable except with underwriter’s approval.

Joinder of Spouses

If a non-title holding spouse is required to join in the execution of a deed or a security instrument, please describe.  Any analogous rights, such as those in a civil union or equivalent, should also be addressed. 

Indiana does not require a non-title holding spouse to join in the execution of a deed or a security instrument. Indiana has no dower or curtsey, or marital rights laws.  Civil union is not recognized.

Mortgage Tax

Is there a mortgage tax in your state?  If yes, is it uniform across the state or does it vary?  If it is uniform, please describe.  

None.

Payment Customs

Who customarily pays for:

(a) Owner’s Policy?
(b) Transfer Tax & Recording Fee?
(c) Survey Charges?
(d) Closing/Settlement Fees?

(a) Owner’s Policy? Seller, in most but not all areas of the state.
(b) Transfer Tax & Recording Fee? There is no transfer tax in Indiana. Seller customarily pays for recording fees for deed and any documents necessary to clear title. Purchaser customarily pays for recording fees for mortgage.
(c) Survey Charges?  Payment is negotiated in purchase agreement.
(d) Closing/Settlement Fees? Closing fee is customarily split between Seller and Purchaser or negotiated in purchase agreement.

Policy Countersignatures

What kinds of countersignatures, if any, are required to issue the policy? 

No statutory requirements.

Real Estate Taxes

Please describe the general tax year, due dates, and delinquency dates, including lien dates and payment cycle.

Indiana real property taxes are taxed in arrears.  Taxes for the current year become a lien as of March 1 of the current year but are not due and payable until the following year. The taxes are due and payable in two installments on May 10 and November 10.

Search and Examination Fees

Is it permissible and/or customary to charge a separate search and/or examination fee, and under what circumstances?  If your jurisdiction is all-inclusive, please state that.

Indiana is not a filed rate state.  It is permissible to charge a separate search and/or exam fee.  Per the Indiana Department of Insurance, the search and exam fee must be charged separately from the title insurance premium and shall not be included in the line item for title insurance premium on the HUD settlement statement.

Search Requirements

Is there a minimum period of time for a title search required: (a) by state law, (b) pursuant to marketable record title acts, or (c) by any other applicable title examination standards (e.g., state bar association)?  Please respond to each category.  If a minimum search period exists for any category, please state it.

(A) There is no minimum period of time for a title search required by state law. However, IC 27-7-3-21 provides that a title search of real estate must be performed for issuance of a title insurance policy unless the principal amount of the mortgage is not more than $50,000, the mortgage is subordinate to a prior mortgage where a title search was conducted and a title policy was issued and the mortgage is not a reverse mortgage.    

(B) Under the Indiana Marketable Title Act set forth at Indiana Code 32-20-1 et seq., root of title is fifty (50) years.

(C) The only title examination standards for search are provided by Underwriter.

Security Instruments (Deed of Trust vs. Mortgage)

Please describe the customary and permissible form(s) of security instruments used in your state. 

Who can be listed as the trustee on the Deed of Trust (e.g., residency and/or natural person requirements, etc.)? Can an underwriter or title agent be designated as the trustee, and, if so, is it customary?

The customary and permissible form of security interest in Indiana is a Mortgage.  Pursuant to Indiana Code 32-29-1-5, a mortgage of land that is:


        (1) Worded in substance as "A.B. mortgages and warrants to C.D." (here describe the premises) "to secure the repayment of" (here recite the sum for which the mortgage is granted, or the notes or other evidences of debt, or a description of the debt sought to be secured, and the date of the repayment); and


        (2) dated and signed, sealed, and acknowledged by the grantor;  A good and sufficient mortgage to the grantee and the grantee's heirs, assigns, executors, and administrators, with warranty from the grantor (as defined in IC 32-17-1-1) and the grantor's legal representatives of perfect title in the grantor and against all previous encumbrances. However, if in the mortgage form the words "and warrant" are omitted, the mortgage is good but without warranty.

Standard Exceptions and Requirements

Please identify the standard exceptions and requirements that are customarily used in your state.

Exceptions:

Rights or claims of parties in possession not shown by the Public Records

Easements, or claims of easements not shown by the Public Records

Encroachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey or inspection of the premises

Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the above records.

Requirements:

Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record

Pay the full consideration to or for the account of the grantors or mortgagors

Pay all taxes, charges, assessments, levied and assessed against subject premises, which are due and payable

Satisfactory evidence should be had that improvements and/or repairs or alterations thereto are completed; that contractor, sub-contractors, labor and material men are all paid; and have released of record all liens or notice of intent to perfect a lien for labor or material.

State-specific Policy Variations

If there are state-specific changes to the provisions in the ALTA policies (e.g., Arbitration, Minerals), please describe.

None.

Title Insurance Form and Filing Regulations

Please describe the form and/or rate filing requirements, if any, related to policies and endorsements.  Please describe any applicable rating bureau. 

None in Indiana. The Indiana Department of Insurance requires agents to charge premium according to the rate schedule attached to agents’ contract with underwriter.  The Indiana Department of Insurance requires Underwriter to have one rate schedule apply to all agents and affiliate operations in Indiana.

Transfer Taxes

Is there a transfer tax in your state? If yes, is it uniform across the state or does it vary?  If it is uniform, please describe.

No transfer tax in Indiana.

Usury

Is usury coverage available?

Yes, usury coverage is available for commercial loans.  Contact underwriter for further information.

Withholding Taxes

What are your state’s requirements, if any, with regard to withholding proceeds from a sale, similar to but not including FIRPTA?

None.

Witness Requirements

Are witnesses required on a deed or security instrument?  If so, please describe.

No.

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