Indiana Real Estate Practices

R.E.P. by Practice (Answer)

V 1

Indiana Attorney Involvement

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Cancellation/Commitment Fee

R.E.P. Topic by State (Question)

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

A cancellation fee is permitted in Indiana.

R.E.P. by Practice (Answer)

V 1

Indiana Certificate of Release (of Mortgage)

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Deeds

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Good Funds Requirements

R.E.P. Topic by State (Question)

Is there a good funds requirement in your state?

Yes, IC 27-7-3.7-4(2) (9-4-19)

R.E.P. by Practice (Answer)

V 1

Indiana Joinder of Spouses

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Liens and Limitations

R.E.P. Topic by State (Question)

Quick Reference Guide:

INDIANA LIEN LIFE CHART

NOTE: Judgment Liens attach when granted by the Court; it is NOT required to record the judgment with the Recorder’s office in order to attach to real estate

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Architect Lien

32-28-11-1 et seq.

Upon recording

County Recorder

1 year from recording

Real

Attorney’s Lien

33-43-4-1 et seq.

Entry on judgment docket

Judgment docket for proceeding

Must be filed 60 days from entry of final judgment

No duration specified

Lien on Judgment

Assessments for Public Improvements

36-9-17-7

Upon letting of contract

Tax Duplicate

5 years of contract date

Real

Bail/

Recognizance (Failure to Appear) Bond

35-33-8.5-9

(Criminal)

Entry in the judgment docket

Judgment Docket in County of action or the judgment docket of County of location of Real Estate

Until court releases upon final determination of cause and compliance with court order to appear

Real

Barrett Law Assessments for public improvements

36-9-36-40,43

When assessments are certified to disbursing officer (County or City Treasurer) for collection

Tax Duplicate

5 years or 15 years if paid in installments

(32-28-8-1)

Real

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Broker Liens

See Commercial Broker Lien

Common Law Liens

32-28-13-1 et seq.

Upon recording and within 60 days of last service provided

County Recorder

6 months from recording

Real

Commercial Broker’s Lien

32-28-12.5-6

Upon recording of notice of intent when fees & commissions are due; prior to or 90 days after the deed recording

County Recorder

1 year;

If installments payable more than 1 year, 1 year from date last payment

Real: Commercial

(defined as non-

1-4 family or zoned residential property)

Condominium Association Lien-unpaid assessments

32-25-6-3

Upon assessment

N/A

1 year if recorded and notice to foreclose issued by homeowner and no action initiated

Real; has priority except for taxes and unpaid balance on first mortgage; upon foreclose mortgagee is not responsible for past sums

Conservancy District- Special Assessment

14-33-9, 10

Upon assessment

Tax duplicates

Until assessment is paid

Real

Ditch Assessment Liens

36-9-27-89

Date of certification of the final assessment to auditor

Tax Duplicate

When paid in full or last day of fifth year after last payment becomes due

Real

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Divorce 1.”Equalization Payment” or “Equalization Judgment”

(Case No. will include “DR, DN, or DC” )

2. Child Support

See Judgments, generally

Upon approval of Decree and Settlement Agreement or Judgment Docket

NOTE: some Courts are not entering in the docket

Does not attach unless reduced to a separate judgment; usually only upon severe delinquency

Circuit / Superior Court; Co. Judgment Dockett

Judgment Dockett

10 years after judgment entered

Real; personal

(NOTE:

Treat all “equalization” payments as a judgment

Employees of Corporation, Lien for Wages, Real Estate Commission

32-28-12-2

Upon recording on notice of intent

Recorder of county where corp. is located or doing business

6 months from recording

Real,

Personal

Employees of Strip Mine, Lien for labor

See Strip Mine

Engineers, Lien for Services

32-28-11-1

Upon recording on notice of intent within 60 days of when work performed

County Recorder

1 year from recording

Real

Estate Tax Lien: Federal

26 USCA 6324(a), 6324(b)

VU 5.20 Estate Taxes

Date of death

See Federal Tax Lien

10 years (general) or 10 or 15 (special) from date of death

Real;

Personal

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Estate Tax Lien:

Indiana

See Inheritance Tax below

Federal Judgment

28 USC 3201

28 USCA 1962

Date of recording

Recorder of county where property located

20 years from date of judgment; may be extended for additional 20 years upon satisfaction of certain conditions

Federal Judgment

Federal Mortgage: SBA/ FHA/ VA / Other

1. General

2. Foreclosure

3. Redemption:

Liens NOT arising under the Internal Revenue laws

Bulletin SLS2016002 2.4.16

28 USCA 2410(c)

Upon recording

Mortgage recording

FHFA as Conservator for Fannie Mae and Freddie Mac / FDIC

County Recorder

Generally shown on lien / mortgage

Consents Required for Foreclosure – see Bulletin

1 year after sheriff sale

Real; personal

Cannot be eliminated by “strict foreclosure”

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Federal Tax Lien: 1. General

2. Purchase Money Mortgage

3. Redemption:

Liens arising under the Internal Revenue laws

26 USCA 6321

VU 6.08 Federal Tax Liens

IRS Ruling 6857

28 USCA 2410(c)

At time of assessment under federal law

Recorder of county where property located

10 years plus 30 days from assessment date; may be refiled for additional 10 years plus 30 days; also be aware of “hidden” extensions

120 days after sheriff sale

Real: Attaches regardless of vesting interest

(TBE/TIC/

JTWROS/ IND / LE/ Business entities)

Recognizes tax lien inferior to PMM

Fixture Filing

See UCC Fixture Filing

Forestry Land Assessments (State)

6-1.1-6-24

Upon withdrawal from classification as native forest land, forest plantation or wild lands

Tax duplicate

10 years

Real

Gift Tax Lien

26 USCA 6324(b)

When gift is made

See Federal Tax Lien

10 years from date gift is made

Real;

Personal

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Hazardous Substance Response Lien

13-25-4-11,12

Upon recording of notice of lien

County Recorder

10 years; or action to foreclose is pending

Real

Highway Encroachment Removal, Failure of Owner to Pay Costs

8-23-5-1

Entry on Judgment Docket

Judgment Docket, Circuit Court

10 years after judgment entered

Real

Homeowner Association Lien -Assessments

(HOA)

32-28-14-5 to 32-28-14-9

Upon recording notice of lien

County Recorder

5 years;

1 year if notice to foreclose issued by homeowner and no action initiated

Real; upon foreclosure mortgagee is not responsible for past sums

Hospital Liens

32-33-4-3

Upon recording

County Recorder in county where hospital located within 90 days of discharge

Until satisfied and released

Does not attach to real estate; attaches to any judgment for recovery for personal injury by person

Inheritance Tax (Indiana)

Repealed for deaths occurring on or after January 1, 2013

Prior law 6-4.1-8-1 applies to deaths prior to January 1, 2013

Date of Death

None

10 years after date of death (for deaths prior to January 1, 2013)

Real; personal

Judgment Liens:

Federal

See Federal

Judgments

Real; personal

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Judgment Liens:

Indiana Circuit / Superior Courts

1.General

2. Lien Extension /

Renewal

3. Foreign

(Case No. will include “CB”)

34-55-9-2

34-11-2-12

Case law

34-55-11-1

Entry on Judgment Docket

Judgment from different county / state filed with

County Court

Judgment

Docket-courts of original jurisdiction

10 years after judgment entered for lien attachment; 20 years total

New Court Order creates new lien; does not relate back to original Order date

10 years after original judgment entered in foreign Court

Real; personal

Judgment Liens: Indiana City Courts

33-35-5-8

Upon recording with Clerk of Circuit Court

Clerk of circuit court

10 years after judgment entered in Circuit Court

Real;

personal

Landlord’s Crop Lien

32-31-1-19

Upon recording of a financing statement at least 30 days before crops mature

County Recorder

Until satisfied and released

Crops

Lis Pendens

32-30-11

Upon filing notice with the Court

Circuit Court Lis Pendens Record

Until primary case is decided; or release of the LP Notice

Real

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Mechanics’ Liens, Real Property

1. Residential

2. Commercial

32-28-3-1 et seq.

Upon recording within:

60 days

90 days

after work completed for commercial property

Relates back to start of work or time materials provided

County Recorder

1 year after lien recorded if no foreclosure action filed

Real

1. Pre-lien notice required for single and double family dwellings

Medicaid Lien

See Old Age Assistance Lien

Mortgages and Vendor’s Lien

1. Mortgage on or after July 1-2012

2. Mortgage prior to July 1, 2012

32-28-4-1 et seq.

Bulletin IN2013002

Upon recording

County Recorder

10 years from maturity date. If no maturity date, 10 years from date of execution. If no date of execution, 10 years from date of recording.

Expires 10 years from maturity date. If no maturity date, expires 20 years from date of execution. If no date of execution, expires 20 years from date of recording.

Real

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Municipal Ordinance Violation Lien

36-1-6-2

Upon recording of notice of lien; and on tax duplicate

Recorder or Treasurer

Until satisfied if recorded;

10 years from date taxes become due on tax duplicate

Real; superior to all other liens except taxes subject to monetary limits

Old Age, Blind, Disabled Assistance Lien

12-14-16-1, 2, 3

Upon recording of a Certificate

County Recorder

Until Satisfied; foreclosure of aged’ s residence prohibited if occupied by H or W

Real;

Personal

Plats of City Lots, Lien for Expenses (plat and survey)

36-7-3-9

When assessment made

Tax Duplicate

Until paid

Real

Restitution Lien

(Criminal Proceedings)

35-50-5-3

Certification of order to circuit court clerk and entry in judgment docket

Judgment docket-Circuit court

10 years

Real

Sewer Charges, Connection, Rate

36-9-23-29

Upon recording

County Recorder

5 years or 15 years if paid in Installments (32-28-8-1)

Real

Sewage Works Lien, Municipal

36-9-23-32, 33

Upon recording of notice

County Recorder; Tax Duplicate

5 years or 15 years if paid in Installments (32-28-8-1)

Not enforceable against subsequent owner unless lien recorded prior to deed

Real; superior to all other liens except taxes

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Sheriff or Coroner Property Seizure

32-30-11-5

Writ of Attachment

Circuit Court

Seizure for cause

Real; personal

State Psychiatric Institution, Charge for Services Uncollected

12-24-15-1

Upon recording

County Recorder

Until satisfied or released

Real-Against Patient and Responsible Parties

State Tax Liens for Delinquent Property Taxes assessed against Real Estate

6-1.1-22-13

Assessment date for year when taxes are assessed

(Jan 1)

Tax Duplicate

10 years from May 10 of the year when taxes first became due

Real

State Tax Warrants

6-8.1-8-2

When entry of warrant is made in Judgment docket by Clerk of Circuit Court by statute

INCite --searchable State of IN website

10 years

Real;

Personal

Street Lighting -Municipal

36-9-9-10

Upon final acceptance by city of electric system (first assessment); Jan. 1 of each year for subsequent assessments

Certification to City or County Treasurer

5 years or 15 years if paid in Installments (32-28-8-1)

Real

Strip Mine, Employee’s Lien on

32-28-10-2

Upon recording on notice of intent within 60 days of labor performed

Recorder of county where mine is situated

1 year from recording

Real; priority over all other liens except state tax lien

NATURE OF LIEN

CITATION

WHEN LIEN ATTACHES

PLACE OF NOTICE

DURATION

TYPE

Surveyor’s Lien

32-28-11-1 et seq.

Upon recording

County Recorder

1 year from recording

Real

Tax Sale Lien in favor of County Executive

6-1.1-24-6

Day after the last date on which tract or item was offered for sale AND did not sell at minimum

Tax Duplicate

Tax Sale Certificate procedures

Real

Tax Sale

Purchaser Lien

6-1.1-24-9; 6-1.1-24-6 (county as purchaser)

When Tax Sale bid paid; certificate of sale issued by auditor

Tax Duplicate

Tax Sale Certificate procedures

Real

Weed Control Board Lien

15-16-7-13

Upon certification

Tax Duplicates

Tax Collection procedures

Real

UCC Fixture Filing

26-1-9.1-501

Upon recording

County Recorder ; certain circumstances may require dual or SOS filing

5 years from recording; can be continued for additional 5 year periods

Real as fixture filing

Vendors Lien

See Mortgages

And Vendors

R.E.P. by Practice (Answer)

V 1

Indiana Mortgage Tax

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Payment Customs

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Policy Countersignatures

R.E.P. Topic by State (Question)

Please describe any statutory or regulatory requirements for countersignatures in order to issue the policy (for example, residency requirements).

No statutory requirements.

R.E.P. by Practice (Answer)

V 1

Indiana Real Estate Taxes

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Search Requirements

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Search and Examination Fees

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Security Instruments (Deed of Trust vs. Mortgage)

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Standard Exceptions and Requirements

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana State-specific Policy Variations

R.E.P. Topic by State (Question)

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

None.

R.E.P. by Practice (Answer)

V 1

Indiana Title Insurance Form and Filing Regulations

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Transfer Taxes

R.E.P. Topic by State (Question)

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.

R.E.P. by Practice (Answer)

V 1

Indiana Usury

R.E.P. Topic by State (Question)

Is usury coverage available?

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

R.E.P. by Practice (Answer)

V 1

Indiana Withholding Taxes

R.E.P. Topic by State (Question)

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

None.

R.E.P. by Practice (Answer)

V 1

Indiana Witness Requirements

R.E.P. Topic by State (Question)

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

No.

Virtual Underwriter

Indiana Real Estate Practices

Real Estate Practices by State

Real Estate Practices by Practice

Pricing and Schedule of Charges

Table of Contents

Indiana Attorney Involvement

Indiana Cancellation/Commitment Fee

Indiana Certificate of Release (of Mortgage)

Indiana Deeds

Indiana Good Funds Requirements

Indiana Joinder of Spouses

Indiana Liens and Limitations

Indiana Mortgage Tax

Indiana Payment Customs

Indiana Policy Countersignatures

Indiana Real Estate Taxes

Indiana Search Requirements

Indiana Search and Examination Fees

Indiana Security Instruments (Deed of Trust vs. Mortgage)

Indiana Standard Exceptions and Requirements

Indiana State-specific Policy Variations

Indiana Title Insurance Form and Filing Regulations

Indiana Transfer Taxes

Indiana Usury

Indiana Withholding Taxes

Indiana Witness Requirements