Title Insurance 101 for Fort Wayne Buyers

Buying a home in Fort Wayne is exciting, but deciphering title insurance can feel like one more hurdle. You want to protect your ownership and avoid surprise liens or claims after closing. In a few minutes, you can understand what title insurance is, what it costs, and the local steps to take in Allen County to close with confidence. Let’s dive in.

What title insurance covers

Title insurance protects you from covered problems tied to the property’s past. It focuses on defects that existed before you bought the home.

Common covered risks

• Unknown ownership claims, like forged deeds or improper transfers.
• Unpaid liens that were not cleared at closing, including tax, mechanic’s, or judgment liens.
• Errors in public records, such as recording mistakes or incorrect names.
• Undisclosed heirs or probate defects, and certain types of prior fraud.

You can read a plain-language overview in the CFPB’s explanation of title insurance and browse consumer guides from ALTA’s consumer resources.

What standard policies do not cover

• Zoning or land-use issues and future eminent domain.
• Problems visible from a physical inspection, such as some boundary or encroachment issues, unless you add a survey-related endorsement.
• Risks created after the policy date, unless they stem from a covered pre-policy defect.

Two policy types you’ll see

• Lender’s policy. Protects the lender’s interest up to the loan amount. If you finance your purchase, your lender will require this policy.
• Owner’s policy. Protects your equity and ownership up to the policy amount, typically the purchase price. It is optional for the lender, but strongly recommended for you. Coverage lasts as long as you or your heirs hold an interest in the property.

How the process works in Fort Wayne

Understanding the workflow helps you track progress and ask the right questions.

1) Order and search

A title company or attorney searches public records to assemble the chain of title and find liens or encumbrances. In Allen County, searches often include the Recorder, Assessor, Treasurer, and sometimes city records.

2) Commitment or preliminary report

You receive a document that explains what the insurer will cover, plus exceptions and requirements. This is your roadmap to clear title before closing.

3) Cure and closing

The closing team clears items, such as paying off old mortgages or obtaining lien releases. You sign final documents, funds are disbursed, and the new deed and mortgage are recorded.

4) Post-closing

After closing, keep your owner’s policy in a safe place. If a covered problem arises later, notify the title insurer right away so they can defend or compensate you, per the policy terms.

Costs and who pays in Allen County

Title insurance premiums are a one-time charge at closing, not an annual fee. There are usually two premiums:

• Lender’s policy: based on the loan amount.
• Owner’s policy: based on the purchase price.

Premiums vary by company and endorsements. Ask your title company for a written quote and verify final numbers on your Closing Disclosure. The Closing Disclosure will also show separate title-related fees, such as title search and settlement charges.

Who pays depends on your purchase contract and local custom. In some markets sellers cover the owner’s policy. In others buyers do. In Fort Wayne and broader Allen County, confirm the allocation with your agent and the title company, then check your contract to make sure it matches your agreement.

If you want to confirm a title company’s licensing status in Indiana, use the Indiana Department of Insurance.

Key local records to know

These offices hold the records that underpin your title search. You can use them to cross-check details as you review your title commitment.

• Allen County Recorder’s Office: deeds, mortgages, releases, plats, easements, and other instruments that affect ownership.
• Allen County Assessor: parcel details, assessed values, and legal descriptions.
• Allen County Treasurer: current tax billing and payment status, including delinquencies or tax sales.
• Allen County GIS (ACIMAP): parcel maps, boundaries, and layers that help visualize property lines and nearby rights-of-way.
• Fort Wayne City GIS: city map resources that can show right-of-way and infrastructure context.

Common Fort Wayne title issues

Allen County has a mix of historic neighborhoods, suburban subdivisions, and rural parcels. Here are issues we often see locally.

• Older records and vague legal descriptions, especially with historic properties.
• Unrecorded or misrecorded easements and access concerns, including alleys or shared driveways in city plats.
• Municipal liens or special assessments for sidewalks, sewers, or streets that may attach to the property.
• Property tax delinquencies or tax sale histories that need to be resolved before closing.
• Floodplain overlays in certain areas. Your lender may require flood insurance. Title insurance does not cover future flood risks.
• Boundary or survey questions when no recent survey exists. Consider a survey or endorsements that address encroachments if you have concerns.

Endorsements to consider

Endorsements add coverage for specific risks that a standard policy excludes.

• Survey or encroachment endorsements to address boundary issues that a survey would reveal.
• ALTA endorsements that can expand coverage for access, restrictive covenants, zoning, or subdivision compliance. Ask which are available and what they cost.
• Gap coverage to protect the period between the last title search date and recording.
• Mechanic’s lien endorsements for new construction or recent improvements.
• Tax-related endorsements in situations with prior tax issues.

You can learn more about endorsements from ALTA’s consumer resources.

How to read your title commitment

Your preliminary title report or commitment is the most important document to review before closing. Focus on four areas.

• Exceptions: Items the policy will not cover unless removed or endorsed. Ask what each exception means for you.
• Requirements: Tasks that must be completed to issue the policy, such as lien payoffs or recorded releases.
• Chain of title: A summary of prior owners and transfers. Look for gaps or irregularities.
• Effective date: The date and time the search was completed. New filings after this date may not be covered unless gap coverage applies.

Step-by-step checklist for Fort Wayne buyers

1. Ask who the title or closing company will be and request the preliminary title report early.
2. Review the commitment and list any exceptions or requirements you do not understand. Ask the title officer to explain them.
3. Verify tax status with the Allen County Treasurer and confirm parcel and legal description details through the Assessor and Recorder.
4. Consider ordering a recent survey or requesting survey-related endorsements if you see fences, sheds, or other potential encroachments.
5. Decide on an owner’s policy amount, usually the purchase price, and which endorsements you want.
6. Confirm who pays for each policy in your purchase contract and adjust your offer or negotiation strategy if needed.
7. Review your Closing Disclosure carefully. Check title premiums and settlement fees for accuracy.
8. After closing, store your owner’s policy safely and keep a digital copy for quick access.

Smart tips to avoid surprises

• Ask about gap coverage if there is a significant time gap between the commitment date and closing or recording.
• If the home is older or has visible boundary markers, a survey or survey endorsement can prevent headaches.
• For homes near waterways or drainage corridors, review floodplain layers on Allen County’s GIS and confirm any lender requirements.
• If you are unsure about a listed exception, request the underlying recorded document from the title company or check the Recorder’s Office for clarity.

Ready to move forward with confidence? If you want a clear, local roadmap from offer to closing, our team is here to help you weigh risks, understand value, and keep your transaction on track. Reach out to Morken Real Estate Services, Inc. to get started.

FAQs

Do Fort Wayne buyers need owner’s title insurance?

• While not required by lenders, an owner’s policy is recommended because it protects your equity against covered pre-closing defects for a one-time premium.

What does title insurance cost in Allen County?

• Premiums vary by company, purchase price, and endorsements, and are paid once at closing. Ask for a written quote and verify the final figures on your Closing Disclosure.

Who pays for the owner’s policy in Fort Wayne?

• It depends on your contract and local custom. Confirm the allocation with your agent and title company, then make sure your purchase agreement reflects it.

How long does owner’s title insurance last?

• Coverage lasts as long as you or your heirs hold an interest in the property, up to the policy limits and subject to policy terms.

Will a standard policy cover boundary or fence disputes?

• Not usually. Consider a survey or survey-related endorsement to address encroachments and boundary issues that a physical inspection would reveal.

Where can I verify a title company’s Indiana license?

• Check with the Indiana Department of Insurance for licensing and consumer information.