As your contract moves through the financing and appraisal stages, the title company begins its work behind the scenes to ensure the home you’re buying has a clear, marketable title. While this step happens quietly, it is one of the most important protections you have as a buyer. Title work ensures that when you receive your keys at closing, you are receiving legal ownership—free from past debts, errors, or claims that could affect your rights to the property.
What a Title Company Does
In Indiana, the title company plays several critical roles in your real estate transaction:
- Conducts a Title Search
The title company investigates the property’s ownership history. This search includes deeds, mortgages, liens, unpaid taxes, easements, judgments, and any legal or financial obligations tied to the home. Their job is to uncover issues before you take ownership. - Provides a Title Commitment
The title commitment is a formal document that outlines what the title company found during its search and what must be resolved before closing. It also details what the final title insurance policy will cover once you become the owner. - Acts as an Independent Third Party
Indiana requires title companies to remain neutral. They do not represent the buyer or the seller—they represent the transaction. Their responsibility is to ensure legal accuracy, protect ownership rights, and compliance with state regulations. - Facilitates Closing & Escrow
Title companies in Indiana also manage the closing process, collect and disburse funds, coordinate lender documents, record the deed with the county, and ensure all parties comply with state laws. They are responsible for safeguarding your money and ensuring proper distribution. - Issues Title Insurance
At closing, the title company issues an owner’s and lender’s title insurance policy. These policies protect you and your lender from financial loss if someone later challenges your ownership or if a previously unknown issue arises.
Why Title Work Matters
Without proper title work, buyers could unknowingly inherit:
- Unpaid taxes
- Old mortgages
- Contractor liens
- Boundary disputes
- Court judgments
- Unknown heirs with ownership claims
- Recording errors or fraudulent transfers
Title work ensures these issues are identified—and resolved—before you take ownership.
Understanding the Title Commitment
Once the title company completes their research, they prepare a Title Commitment. This document is shared with both you and us so we can help you understand it. The Title Commitment includes several key sections:
Schedule A – The Basics
Details the property, the buyer, the sellers, and the type of title insurance being issued.
Schedule B – Requirements
Lists items that must be resolved before closing, such as mortgage payoffs, HOA documents, tax payments, estate paperwork, or lien releases.
Schedule C – Exceptions
Outlines permanent conditions that will remain with the property after closing, such as easements, covenants, and public utility rights. These are not “problems”—they are simply part of the property’s legal makeup.
The Title Commitment allows us to verify that the seller can legally transfer ownership to you and that no unresolved issues will follow you after closing.
Indiana Rules & Responsibilities
Indiana Title Companies must adhere to strict state guidelines:
They must conduct a thorough title search based on public records.
Funds must be handled through regulated escrow accounts.
They must remain neutral and cannot direct a buyer or seller to choose a specific insurer or vendor.
They must accurately record documents with the county recorder after closing.
They ensure compliance with Indiana’s Good Funds Law—meaning all funds for closing must be verified and certified.
Their responsibility is to ensure accuracy, legality, and protection for all parties involved.
How Lee Ann & Betzy Support You
When the title work begins, we help you:
- Review the Title Commitment
- Understand each section and what it means
- Navigate any issues that arise and coordinate resolutions
- Stay on timeline for lender and title requirements
- Ensure you are receiving clear, insurable, and properly recorded ownership
If the title search reveals concerns, we advocate for you, coordinate with the title company, and guide you through the best path to resolution.
