8315 W. 10th Street, Indianapolis IN 46234. 

Indiana Deed Vs Indiana Title Insurance - What’s The Difference?

January 6, 2023

When purchasing a home, you probably didn't think about the potential of a previous owner's claim or lawsuit. A title company will protect you from this risk while a title insurance will cover your risk, not your deed. Title insurance, title search, and settlement services from a title business guarantee your property rights.

Indiana Title Company

Title companies can assist you in avoiding property ownership conflicts. The Indiana title company confirms that the seller can sell the property. Title insurance protects homeowners and lenders from title claims from prior owners. In addition, a title represents your legitimate ownership, use, and management of the real estate. To transfer possession of a home lawfully, you must ascertain that the title is clear of errors and unencumbered, which indicates that no other parties have a claim to the property.

Indiana Deed vs. Indiana Title Insurance

Having a deed doesn't protect you from claims by prior owners. Only title insurance covers title claims, flaws, and encumbrances. To own a home, you need a deed and title insurance.

Indiana Escrow company vs. Indiana Title Company

Title companies protect you and your lender from title flaws. In contrast, escrow companies handle the money used to buy the home later. Escrow officers check loan and contract documentation, advise parties of closing timelines, distribute closing cash, and order title and property documents. Escrow officers in certain states are attorneys or title officers.

What Steps Does A Indiana Title Company Take Before Providing Title Insurance?

An Indiana title company must conduct a title search on the property to see whether there are any title flaws or encumbrances before it can provide title insurance. Here are the steps:

  1. They first research public records errors, liens, and encumbrances.
  2. Verifying the boundaries, legal description, and easement property.
  3. Investigating forgeries, impersonations, illegal deeds, and missing heirs.

Note that title search verifies property ownership and confirms that the seller can sell the residence. Before granting title insurance, a title company searches the "chain of title"—the home's ownership history—and finds all title flaws and encumbrances.

What Is Done By An Indiana Title Company After A House Closes?

An Indiana title company can assist with pre-closing modifications like loan amount or cosigner addition. Title officers will update the paperwork. If you put your property in a trust, LLC, or partnership, a title officer must evaluate legal paperwork to ensure they meet title insurance criteria. A title officer will check your ID at closing.

The Best Way To Pick An Indiana Title Company

You should look around for the best deal if you live in an area without set title insurance rates. Use recommendations from friends, family, or a real estate professional. Finding a title company with excellent customer service and reviews is crucial since your rights as a homeowner are at stake. 

Additionally, try to combine the owner's and lender's insurance coverage whenever possible to save money. Finally, think about haggling the amount of the title insurance with the seller at closing. However, if you're in a competitive market, proceed with caution.

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8315 W. 10th Street
Indianapolis IN 46234

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