Monday, July 16, 2007

Consumers and title insurers in Indiana should take note.....

According to Paul Ogden, managing attorney for the Indiana state insurance division, RESPA is not as strict as the Indiana state law and that's causing confusion.

He says, "
In Indiana it is custom for the Seller to pay for the Buyer's title insurance policy. Indiana has a statute that is much more restrictive than Section 9 of RESPA. Under Indiana law, the seller and the lender have no say over the title agent the buyer picks to close the transaction, or to make the selection of a title agent or an insurer a condition of the sale or the mortgage. The seller and lender only have a right to veto the insurer (not the agent) selected by the buyer."

Here's a link. You'll have to scroll down to the statute:

For more information, contact:

Paul K. Ogden

Managing Attorney, Title Insurance Division

Indiana Department of Insurance

311 W. Washington Street, Suite 300

Indianapolis, IN 46204

(317) 234-5154

Thank you, Mr. Ogden, for sharing this information.

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