Title Insurance Endorsements and Title Objections

A title to real property confirms that you legally own a specific piece of real property and gives you the right to sell that property. In Indiana, legal record title is the highest evidence of ownership and raises a rebuttable presumption of ownership. 24 Ind. Law Encyc. Property § 13. Since title is important to proof of ownership of your property it is smart to insure your title work to minimize your risk of issues like fraud or documentation errors. Two tools that you could use to help protect your title work are title insurance endorsements and title objections.

Title objections are used by prospective purchasers to raise any concerns they may have relating to a title report from a title company. These objections are a subjective determination and can prevent a closing if the objection is not a permitted exception to the title or if the title company is unable to remove the objection from the title report. Commercial Real Estate Transactions § 12:3 (3d ed.). The determining factor on whether a title objection exists is “whether the purchaser expected the exception to exist and whether they provided for it in the contract or mortgage commitment.” Commercial Real Estate Transactions § 12:3 (3d ed.). Some of the following are a few permitted examples of title objections:

• Defective descriptions
• Liens
• Unpaid taxes
• Building code violations
• Break in the chain of title

Title insurance endorsements provide additional protections for a purchaser by adding specific coverages and modifying exceptions in the current title policy. There are a wide variety of real estate title endorsements that someone could choose to customize their title insurance to fit an individual’s specific situation. A few of the more commonly used title endorsements are Zoning endorsements, Planned Unit Development endorsements, Variable Rate Mortgage endorsements, Comprehensive endorsements (easements and encroachments), and Land Survey endorsements. These endorsements are not required to complete a real estate transaction, but they do add additional protections to minimize your risk to situations that are specific to your transaction.

If you have any questions or want assistance with title insurance endorsements or title objections, please reach out to one of our attorneys at McNeelyLaw LLP by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.