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Navigating property title issues is a crucial challenge in the ever-changing real estate industry that can obstruct the smooth closing process.

This post will discuss common property title issues in real estate transactions and explain why title insurance is required to ensure the smooth and secured transfer of home ownership.

The 10 Property Title Issues

The following are some examples of typical issues with property titles:

1. Public Records With Errors

Errors happen to everyone but can have disastrous consequences if they interfere with your homeownership rights. Errors in filing or clerical work could impact your property's deed or survey and make fixing them expensive.

2. The Unknown Liens

It's possible that the previous owners of your property weren't meticulous bill payers or bookkeepers. Even after the sale, you can still have liens on your property for outstanding obligations from banks or other financing organizations. This is problematic for distressed properties.

3. Illegal Deeds

While your property's chain of title may appear intact, an undocumented immigrant, minor, or married person may have done an earlier deed. These occurrences may alter earlier deed enforceability and ownership.

4. Missing Or Unknown Heirs

After someone passes away, their heirs or those specified in their will may inherit the house. Sometimes, those heirs are unknown or missing at death. Sometimes, family members argue the will for their property rights. These events may affect your property rights long after you bought it.

signing a documents

5. Fabricated Documents

Unfortunately, the world isn't honest. Public records may contain false or fabricated documents that obscure property ownership. You can lose your right to your house if these forgeries are discovered.

6. Unidentified Obstacles

When you bought your property, you might not be aware that there was a prior mortgage, lien, or other non-financial claim against all or part of it or that covenants or restrictions were limiting how you might use it.

7. The Unknown Easements

An unknown easement may prevent you from using your new property and its surrounding land or allowing government agencies, business organizations, or others to access it. Even while easements are usually non-financial, they might impair your property enjoyment.

8. Disputes Over Boundaries And Surveys

Before purchasing, you might have seen multiple surveys of your land, yet there might be further surveys with different borders. As a result, someone else or your neighbor might be able to claim ownership of a piece of your property.

9. The Unknown Will

When a property owner dies, the state can sell a home without a will. You acquire ownership rights to such a home when you buy it. Your rights to the property may be jeopardized years later if the deceased owner's will is revealed.

10. Using A False Identity To Pose As The Prior Owner

It is possible to fraudulently "impersonate" a property owner using common or similar names. If you buy a house from a fake owner, you can lose your legal title to it.

Why Title Insurance Is Required To Prevent Some Property Title Issues?

Your house may be new to you, but every property has a tale to tell about its past. A title search might uncover title defects associated with your property. Furthermore, your title insurance policy may offer protection against title issues identified after the transaction has been finalized, provided that the policy's provisions are met.

Take Note

These property title issues, including boundary disputes and concealed liens, highlight the need for solid security. This is why title insurance is required to emerge as an indispensable safeguard, offering comprehensive coverage against unforeseen defects or discrepancies in property titles. Purchase title insurance to protect your house investment.

Transactions involving commercial real estate are challenging. The paperwork alone may already be burdensome! It can be difficult to prove unambiguous ownership of a commercial property because of legal descriptions, zoning changes, building upgrades, and various property owners.  

This is one of the reasons why having title insurance is beneficial. It serves as a proof that you have the legal authority to possess and use the property other than just owning it.

The majority of insurance protects you and your belongings from unfavorable future events. However, title insurance shields you from events that have already happened, such as unpaid taxes or liens placed against the property.   

What is Title Insurance?

The buyer will be shielded by title insurance from problems arising from the property's chain of title. It is applied to both commercial and residential real estate transactions. However, compared to residential deals, business transactions are significantly more complex. This is a result of the notable disparity in the sums of money at stake.  

The Protection Provided

While title insurance specifies the buyer's ownership rights, deeds demonstrate property ownership between purchasers and sellers. The owner's rights may be restricted by liens and other issues. The buyer needs assurance that the property's title is exactly as the seller claimed. The buyer's title insurance will protect them and their investment, for example, if the seller pledged to transfer the whole and clean title, but turns out later that the seller was not entitled to do so or if another party asserts ownership of the property.

The title insurance coverage has been tailored for the particular transaction. Even so, it typically pays for the costs of a title battle; alternatively, the buyer gets their money back if the lawsuit is unsuccessful and the opposing party is given the property.

Title Search

The title insurance provider will need to do a title search before they can grant you title insurance. They will thoroughly examine all recorded property transfers, liens, and other encumbrances placed on the subject property. A preliminary title report will be sent to the buyer and seller at the end of this search.

Types of Policies and Endorsements

Title insurance companies offer two different kinds of policies:

In addition, a title insurance provider may provide a range of endorsements for policies that cover issues outside the title, including environmental issues, border mistakes, and zoning disputes. The price of these is determined by the risk factors and the property's worth.

agent discussing about how to get title insurance

How To Get Title Insurance

The buyer and seller of commercial real estate must agree on the title insurance provider because the insurance agents will serve as the escrow agent. Thus, the title insurance firm enters into the agreement early on, concluding the due diligence phase and preceding the closing.

The American Land Title Association (ATLA) sets rules for the title insurance market, and there are several title insurance providers in the country.

How Commercial Real Estate Title Insurance Works

The title insurance company's job is to identify any unresolved historical issues. A title search is the first step in this process, which looks up every deed, mortgage, and easement. If the job is thoroughly investigated, it may reveal instances of encroachment or a contractor's lien when the work is finished but full payment is not received. These issues can frequently be fixed before closing or remain on the title as an exception.

Title insurance shields your financial commitment. Let's say that a claim is subsequently made contesting who owns the land. In that scenario, the insurance will pay the legal costs required to defend ownership and resolve the matter, even if the allegation is unfounded.

What It Covers

Most plans will provide protection against the following, while each policy is unique and depends on the needs of the persons involved and the property in question:

What Title Insurance Covers?

The American Bar Association advises that a buyer include the following specific components in their title insurance policy:


Title insurance is a subset of indemnity insurance that guards your business investment against monetary loss brought on by title issues. You don't have to be afraid of the unexpected when buying commercial real estate. These intricate transactions are made secure and practicable by title insurance. It would be challenging to locate lenders ready to loan such substantial amounts of capital without this insurance.  

Real estate transactions are complicated procedures for a certain reason -- to guarantee a safe and orderly exchange of property. It includes numerous phases and requirements as well as escrow, which is an important element essential to these transactions.

For all parties involved in the purchase or sale of real estate, it is essential to comprehend what escrow is and its importance.

How Does Escrow Work In Real Estate?

Escrow is a method in which a neutral third party holds the accounts, such as the funds and some documents until all the property's requirements have been met. It works as a security and protection of all transaction funds and important papers.

The Fundamental Stages In The Escrow Process

We already shared a simple and easy understanding of "how escrow works in real estate," so now, let's take a look at the fundamental stages of the escrow process:

1. The Opening Escrow

An escrow account may begin if the buyer and the seller agree on the sale's condition or the terms. By setting your funds in an escrow account, the buyer should confirm the purchase and show that the buyer is eager and accountable to follow the transaction terms on time. It is a standard occurrence for real estate transactions and a starting process that creates trust and dedication between the buyer and the seller.

2. The Escrow Period

In order to make sure the property meets their expectations and the terms agreed upon, the buyer should inspect it. Buyers may find that this examination method helps them find potential problems before making a purchase. The escrow period allows the buyer to meet the potential that is significant to the acquisition, and it may also help to settle certain associated issues and complete some necessary legal paperwork to complete the deal.

3. The Closing

The transaction will move to the closing stage if all the conditions are met or completed. The escrow agent will ensure that all papers and terms of conditions have been accomplished, and then they will proceed to handle the transfer of funds and the property title. The buyer's payment will be given to the involved parties in the transactions, such as the seller, and the associated fees, such as the agent commissions and other closing fees.

Why Are Escrows Important To The Real Estate Industry?

Here are the three important purposes of escrow in real estate:

1. The Risk Mitigation

This aims to lessen the potential risk for both the buyer and the seller. It secured the buyer's funds and, for the seller, underestimated the risk of losing the property without ensuring the buyer would meet their obligations as agreed upon.

2. The Transaction Facilitation

The escrow agents ensure that the buyer and seller follow each stage according to the agreement's terms and conditions, that all the legal documents are correct and complete, and that financial records are present. They also help and assist both parties with good and proper communication throughout the process.

3. The Security And Compliance

Escrow ensures security and strict compliance with the terms of all transactions. It protects those interests by securing funds during critical stages, such as the home inspection or final walk-through before closing the deals. 


Having an escrow agent will help you secure and protect your transactions and ensure that both parties involved have met all the terms and conditions before going to the last stage, which is the closing stage. 

Escrow in real estate is very important, and you should know what escrow means and how it works if you are looking for a home or selling a home.

Title insurance protects mortgage lenders and buyers against ownership disputes. Title insurance has also changed with technology. The title services industry is experiencing a remarkable transformation propelled by title insurance technology and broader technological advancements in the insurance industry. 

This post will address future technological advancements poised to significantly impact the title insurance industry, particularly within the context of technological advances in real estate.

What Is The Future Of Technological Advances In Real Estate Title Insurance Industry?

1. The Automated Title Searches 

Title searches used to be done manually by looking through the property's public documents. The procedure is both time-consuming and costly. AI-driven automation, the landscape of title insurance technology, holds immense promise. It signals a future where data security and operational agility are paramount. Automation reduces errors and saves time and costs.

2. The Blockchain Technology

A digital ledger using blockchain technology safely and openly records transactions. Secure and transparent property record storage and management can be achieved with blockchain in title insurance technology advances. Real estate fraud and errors can be reduced with blockchain-based title insurance. It can also eliminate title insurance intermediaries, lowering title insurance costs for homeowners and mortgage lenders.

3. The Smart Contracts

Smart contracts automatically execute agreed-upon terms, helping ensure real estate transaction parties follow conditions. Title searches and transfers can also be automated to save time and money on title insurance.

4. The Remote Online Notarization

Online notarization is called remote online notarization (RON). Both homebuyers and mortgage lenders benefit from RON's reduced notarization costs and time. RON is trending in technological advances in real estate and is expected to grow.

notary using a laptop

5. The Artificial Intelligence And Machine Learning

AI and ML automate property value, risk assessment, and fraud detection in real estate. These experts can also forecast property values and find investment opportunities. AI and machine learning methods help title searchers find titles faster by processing vast volumes of data. 

6. The Augmented And Virtual Reality

AR and VR allow homebuyers to examine properties from home with virtual tours, resulting in engaging experiences in real estate. To increase the likelihood of a sale, houses can also be virtually staged using AR and VR.

7. The Cloud-Based Platforms For Title Insurance 

These platforms let you securely store and access property records and other documents, which can significantly save time and money compared to the conventional paper-based title insurance process. Cloud-based technologies also allow homeowners and mortgage lenders to track title insurance activity in real-time, improving openness and reducing errors and delays. Like any technology, cloud-based platforms have risks.

8. The Predictive Analytics And Big Data Usage

Predictive analytics and big data could transform the sector by revealing market patterns, risk variables, and other elements that affect title insurance. Title insurance experts can make better decisions by identifying patterns and trends in significant volumes of data that may take time to be apparent. It helps mortgage lenders and real estate professionals determine where to invest and lend. However, predictive analytics and big data present challenges in the title insurance industry.


Technological advances will shape the title insurance market. These improvements pose data privacy and security risks, but ethical use can yield many benefits. This growth of title insurance technology advances underscores a pivotal shift towards digital solutions that streamline processes and fortify data security measures. Title Guarantee uses the latest technologies and offers excellent service to provide effective and secure title insurance solutions.

Title companies have a huge impact on the real estate business. Their responsibilities include verifying property ownership and clearing the title. Understanding the complex process of performing title searches shows how important it is to conduct thorough investigation and verification to guarantee the accuracy and integrity of property ownership.

To navigate this complex terrain, title searchers rely on various methods and tools. In this post, we'll look at how to verify property ownership and why it matters in title companies.

A Complex View On How To Verify Property Ownership In Title Companies

What Is The Title Search Process?

A title search is first performed when a title company is hired for property ownership verification. One of the primary purposes of a title search is to verify the seller's legitimacy as the property's transferor. Public records must be searched to find the property's present owner and any liens or encumbrances that can influence the title. 

Title searches typically examine deeds, mortgages, and tax records. They also look for outstanding easements, liens, or limitations that might impact the title or use of the property. Moreover, the outcome of a title search can have significant implications for real estate transactions, influencing the validity of property transfers and the resolution of potential disputes.

Checking The Chain Of Title

Making sure that there is a clear chain of title is one of the most crucial steps on how to verify property ownership. A chain of titles is a history of all the owners of a piece of land, beginning when it was first purchased and continuing to the present day. The title company will check the chain of title to guarantee that there are no breakdowns and that each transfer of ownership has been recorded appropriately. Title issues may arise if there are any breaks in the chain of title or if a transfer of ownership needs to be documented appropriately.

Verifying Encumbrances And Liens

Verification for liens and encumbrances should also be considered an essential part of the property ownership verification. 

To better understand how these work, let's find out their differences:

A lien is a legal claim enforced against property to guarantee debt payment. Meanwhile, an encumbrance is a restriction or limitation imposed on the property. Some examples of these that the title company would investigate to see whether or not they impact the title include an easement, mortgage, or unpaid taxes are some examples of encumbrances or liens. 

Before putting the property on the market, the title company will work with the seller to clear any unpaid liens or encumbrances.

Checking With The County Recorder To Verify Property Ownership

The title company will typically verify the ownership of the property with the county recorder's office once they have finished the title search and validated the chain of title; this is the standard procedure. 

The county recorder's office is responsible for documenting all real estate transactions in the county. 

The title company will confirm who owns the property by reviewing the recorded paperwork, including the deed and other relevant legal documents. In addition, they will confirm that the seller is legally permitted to sell the property.

title deed with blue pen

What Is Title Insurance?

There is always the possibility that a problem with the title could be overlooked, even while conducting the most exhaustive search possible. Because of this, title insurance is necessary to safeguard the buyer's investment in the property. 

Title insurance protects the policyholder against monetary damages that may be incurred due to issues with the title, such as an invalid title or liens that have yet to be identified. 

The title insurance coverage will compensate the buyer for any monetary damages if a title issue arises after the sale is finalized.


Property ownership verification is one of the most important stages in the real estate transaction process, and title companies are essential to this process as they conduct extensive title searches and property ownership verification. 

Showing the process and resources utilized helps us understand real estate transactions and the need for due diligence in protecting property rights.

Looking for a trusted title company in Indiana to help sell your home? If yes, our team at IndyLegal is here to serve you.

Call us at 317-214-6023 today so we can assist you!

Title insurance might not be the most thrilling aspect of buying a home, but it's undoubtedly one of the most crucial. In Indiana, as in many other states, understanding title insurance is essential for homebuyers to protect their investment and ensure a smooth transfer of property ownership. Whether you're a first-time buyer or a seasoned homeowner, this comprehensive guide will walk you through everything you need to know about title insurance in Indiana.

What is Title Insurance?

Let's start with the basics. Title insurance is a type of indemnity insurance that protects both lenders and homeowners against financial loss due to defects in a property's title. These defects could include errors or omissions in public records, undisclosed heirs claiming ownership, forgery, fraud, or liens against the property.

Why Do You Need Title Insurance?

When you buy a home, you want to be confident that you're the rightful owner and that no one else has a claim to the property. Title insurance provides this peace of mind by conducting a thorough examination of public records to ensure that the title is clear before the transaction is finalized. Without title insurance, you could be at risk of financial loss or even losing your home if someone else challenges your ownership rights.

Types of Title Insurance

In Indiana, there are two main types of title insurance: owner's title insurance and lender's title insurance.

Both types of title insurance are usually required during the homebuying process, and while the lender's policy protects the lender, it's the owner's policy that provides protection for the homeowner.

The Title Search Process

Before issuing a title insurance policy, a title company will conduct a thorough title search to uncover any issues that could affect the property's title. This process involves examining public records, including deeds, mortgages, court records, tax records, and more. The goal is to identify any existing liens, encumbrances, or defects in the title that could jeopardize the homeowner's rights.

Common Title Issues

While most real estate transactions in Indiana proceed without any major issues, there are several common title issues that homebuyers should be aware of, including:

The Role of the Title Insurance Company

In Indiana, title insurance policies are typically issued by title insurance companies or agents. These companies play a crucial role in the homebuying process by:

While title insurance may seem like just another expense in the homebuying process, it's an investment that can save you from significant financial loss down the road. By understanding the importance of title insurance and working with a reputable title insurance company, Indiana homebuyers can ensure a smooth and secure real estate transaction. So, before you close on your next home, be sure to do your due diligence and secure the protection that title insurance provides. Your peace of mind—and your investment—depend on it.

Closing on a property can be both thrilling and daunting. Whether you're a seasoned investor or a first-time homebuyer, navigating the intricacies of the closing process is crucial for a smooth transition of property ownership. In Indiana, like in many other states, this process involves various legal and financial steps that demand attention to detail. To shed light on this often opaque procedure, we've consulted title experts to compile essential tips for navigating the closing process in the Hoosier state.

Understanding the Closing Process:

The closing process in Indiana typically involves several key steps:

1. Contract Review: Once a purchase agreement is signed, it's crucial to review the contract thoroughly. Ensure that all terms and conditions are clearly outlined and that there are no discrepancies or ambiguities.

2. Title Search: Conducting a title search is essential to uncover any existing liens, encumbrances, or ownership disputes associated with the property. This step helps identify potential obstacles that may affect the transfer of title.

3. Title Insurance: Securing title insurance is a fundamental aspect of the closing process. Title insurance protects both the buyer and the lender against any unforeseen defects in the title that may arise after the transaction is complete.

4. Property Inspection: Prior to closing, it's advisable to conduct a comprehensive inspection of the property to identify any structural issues or defects. Addressing these concerns beforehand can prevent complications during the closing process.

5. Finalizing Financing: For buyers relying on financing, ensuring that all mortgage documents are in order is essential. This includes providing necessary financial documentation and finalizing loan details with the lender.

Tips from Title Experts:

To navigate the closing process with confidence, consider the following tips from title experts:

1. Work with a Reputable Title Company: Partnering with a reputable title company can streamline the closing process and provide invaluable expertise. Choose a company with a proven track record of excellence and a commitment to customer satisfaction.

2. Communicate Openly: Effective communication is key throughout the closing process. Stay in regular contact with your real estate agent, lender, and title company to address any concerns or questions promptly.

3. Review Documents Carefully: Take the time to review all closing documents thoroughly before signing. If anything is unclear or requires clarification, don't hesitate to seek guidance from your title agent or attorney.

4. Be Prepared for Delays: While everyone aims for a smooth and timely closing, it's essential to be prepared for potential delays. Factors such as financing issues, title complications, or last-minute negotiations can prolong the process.

5. Stay Flexible: Flexibility is essential when navigating the closing process. Be prepared to accommodate scheduling changes, document revisions, or unexpected developments that may arise.

Closing on a property in Indiana can be a complex yet manageable process with the right knowledge and guidance. By understanding the key steps involved and heeding advice from title experts, buyers and sellers can navigate the intricacies of the closing process with confidence. Remember to prioritize communication, diligence, and flexibility to ensure a successful and stress-free closing experience.

Title issues can be a nightmare for homebuyers, potentially leading to legal battles, financial losses, and even the loss of property. In Indiana, like in many other states, there are specific title issues that homebuyers should be aware of to avoid any unpleasant surprises down the road. Whether you're a first-time homebuyer or a seasoned real estate investor, understanding these common title issues is crucial before finalizing any property purchase in the Hoosier State.

1. Missing Heirs or Undiscovered Wills

One of the most common title issues in Indiana arises from missing heirs or undiscovered wills. If a property owner passes away without a clear will or with heirs who cannot be located, it can create complications during the title transfer process. Even if the property has been sold multiple times since the owner's passing, unresolved heirship issues can lead to legal disputes, clouding the title and affecting your ownership rights.

To avoid such scenarios, it's essential to conduct a thorough title search and possibly even invest in title insurance to protect yourself against any future claims from unknown heirs.

2. Boundary Disputes

Boundary disputes can arise when there is confusion or disagreement regarding the exact boundaries of a property. This can happen due to inaccurate surveys, discrepancies in property descriptions, or disputes with neighboring landowners. In Indiana, boundary disputes can escalate quickly, leading to costly legal proceedings and potential loss of property.

Before purchasing a home in Indiana, make sure to review the property's legal description, conduct a survey if necessary, and resolve any boundary disputes before closing the deal.

3. Mechanic's Liens

Mechanic's liens can pose a significant threat to property buyers in Indiana, especially if the previous owner failed to pay contractors or subcontractors for work done on the property. These liens can remain attached to the property even after a change in ownership, potentially leading to foreclosure if left unresolved.

Before finalizing a property purchase, it's crucial to ensure that all liens against the property have been satisfied or discharged. Working with a qualified real estate attorney can help you navigate this complex aspect of property transactions.

4. Easements and Right-of-Way Issues

Easements and right-of-way issues can restrict how you use or develop your property. Common examples include utility easements, which grant utility companies access to install and maintain infrastructure on your land, or access easements, which allow neighboring properties to access roads or utilities through your land.

Before buying a property in Indiana, carefully review any existing easements or right-of-way agreements to understand how they might affect your intended use of the property.

5. Forged or Fraudulent Documents

Unfortunately, forged or fraudulent documents can sometimes surface during property transactions, casting doubt on the validity of the title. Whether it's a forged deed, a fraudulent mortgage, or a fake release of lien, these documents can create a legal nightmare for unsuspecting homebuyers.

Another crucial role that title companies play is in facilitating the closing process. They act as neutral third parties during the closing, ensuring that all necessary documents are signed, funds are transferred securely, and the transaction is executed according to the terms of the contract. Their presence helps streamline the closing process and minimizes the risk of errors or misunderstandings.

To protect yourself against forged or fraudulent documents, work with reputable title companies, conduct thorough due diligence, and consider investing in title insurance to safeguard your investment.

In conclusion, while purchasing a home in Indiana can be an exciting milestone, it's essential to be aware of the common title issues that could jeopardize your ownership rights. By conducting due diligence, working with experienced professionals, and investing in title insurance, you can mitigate the risks and enjoy a smooth and worry-free homebuying experience in the Hoosier State.

In the world of real estate transactions, there's a silent but indispensable player: the title company. Often overlooked, Title Companies play a crucial role in ensuring smooth and secure real estate transactions. Nowhere is this truer than in the state of Indiana, where title companies act as the guardians of property rights and the facilitators of seamless transfers of ownership.

Understanding the Role of Title Companies

Firstly, let's demystify what a title company actually does. At its core, a title company specializes in researching and verifying the legal ownership of a property. They delve into historical records, comb through deeds, and check for any liens or encumbrances that could cloud the title. This meticulous process is aimed at providing assurance to both the buyer and the lender that the property can indeed be transferred free and clear of any disputes or legal issues.

Ensuring Clear Title

In Indiana, as in many other states, the concept of "clear title" is paramount in real estate transactions. A clear title means that the seller has the legal right to sell the property without any outstanding claims against it. Without a clear title, a transaction can be delayed or even fall through entirely, causing frustration and financial loss for all parties involved.

This is where title companies shine. Through their exhaustive research and examination of property records, they uncover any potential issues with the title early on in the process. Whether it's an unpaid tax lien, a boundary dispute, or an overlooked easement, title companies work tirelessly to resolve these issues before the closing date, thus ensuring a smooth transfer of ownership.

Providing Title Insurance

In addition to their research and due diligence, title companies also offer an invaluable form of protection: title insurance. Title insurance protects both the buyer and the lender against any defects in the title that may have been missed during the initial examination. This safeguard provides peace of mind and financial security to all parties involved in the transaction.

Facilitating Closings

Another crucial role that title companies play is in facilitating the closing process. They act as neutral third parties during the closing, ensuring that all necessary documents are signed, funds are transferred securely, and the transaction is executed according to the terms of the contract. Their presence helps streamline the closing process and minimizes the risk of errors or misunderstandings.

In the bustling realm of real estate, title companies operate quietly but indispensably, serving as the backbone of transactions. Within Indiana's landscape, where property rights hold profound importance, these entities are instrumental in safeguarding the integrity of each transaction. As you navigate the complexities of real estate dealings, take a moment to recognize and value the invaluable contributions of title companies, ensuring the smooth and secure progression of every endeavor.

In Part 1, we’ve learned that the closing process is the final stage in the real estate transaction. It is when the homebuyer receives the key to their new home and the home seller gets paid for the sale of their property.

We also talked about the typical closing period for both mortgage-financed home acquisitions and all-cash transactions. Now, we’re going to dive deeper into the closing process and the role of a title service company in a seamless home closing.

Who is present at the closing?

Closing on a house is frequently done in phases and on various days. Although not necessary for every party to be present, the following parties frequently are:

The settlement meeting is facilitated by the closing agent, who also ensures that all paperwork is signed, and documented and that escrow and closing costs are paid promptly.

How Much Are Closing Costs?

The fees you have to pay before officially owning a home, apartment, or townhouse are known as closing costs. Closing fees should be between 2 and 5 percent of the mortgage amount. According to CoreLogic, the national average for closing expenses in 2021 was $6,905 with transfer taxes included. Washington, D.C. according to the same survey, Missouri had the lowest average closing costs at $2,061, while had the highest average closing costs at $29,888.

Depending on the purchase price of the property and the financing arrangement, closing fees might vary, but generally speaking, they consist of:

On closing day, you may have to pay additional fees for an attorney, a notary, and any county or local taxes or fees that certain jurisdictions impose on real estate transactions.

title deed paper with pen and house key

How Important Is The Role Of A Title Service Company In Closing?

From signing the original contract to signing the closing documents, there are numerous processes involved. Many of these actions are quite obvious, such as signing off on negotiations to the terms of the contract as either side, having an inspection of your home done if you are the seller, or submitting financial paperwork to your loan officer if you are the buyer. However, a lot of these actions are less obvious but just as crucial. Many of these can be completed by a title company, including:

Disbursement Of Funds: Following completion of the transaction and signing of all paperwork, the title firm will distribute the money by the buyer, seller, and lender's instructions. This entails settling any unpaid liens or debts on the property and giving the rightful recipients of the leftover money.

Escrow Services: Title companies frequently serve as impartial intermediaries during the closing process, keeping crucial documents and earnest money deposits in escrow until all terms of the sale are satisfied. This guarantees the safe and equitable handling of money and paperwork.

Title Search: The main duty of the title business is to carry out a thorough title search by looking through public records to confirm the ownership history of the property. To make the title clear and marketable for transfer at closing, the title company searches for liens, defects, or encumbrances that may still exist.

Settling Title Issues: The title company attempts to remedy any title concerns found during the title search before closing. This can involve resolving other title problems, fixing inaccuracies in the property description, or collaborating with creditors to pay off outstanding liens. Presenting a clear title is the aim of the title business.

There are a few choices accessible when it comes to choosing a title firm for a dry closing. While some purchasers prefer to select their own title company, others prefer to go with one that is recommended by their lender. It's critical to conduct due diligence and select a respectable title company with an established track record of accomplishments.

Nonetheless, a title company plays a crucial role in the safety of your property and ease of closing, so be sure to take the time to choose one.

Looking for a reliable title service company in Indiana?

If yes, then don't look further! At IndyLegal, our goal is to help home buyers and sellers, banks and lenders, builders, developers, real estate brokers and agents, and more find the best title insurance and services.

We also offer escrow services, settlement services, and investor services.

To learn more about our offers, click this link.

8315 W. 10th Street
Indianapolis IN 46234

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