Do you need a real estate attorney to close in Indiana?

What does Indiana law require?

We found no section of the Indiana Code, in the chapters on seller disclosure, deeds, recording, title insurance or real estate licensing, that says a buyer or seller must use an attorney at closing. We state this only as what the texts we read say; we did not find an Indiana court decision or bar opinion on point, so ask a lawyer or the Indiana Supreme Court Disciplinary Commission if the question is live for you.

Three rules frame the issue:

• Only admitted attorneys practice law. A person who professes to be a practicing attorney, tries a case, or “engages in the business of a practicing lawyer” without being admitted by the Indiana Supreme Court commits a Class B misdemeanor (IC 33-43-2-1).
• The Supreme Court polices it. Under Admission and Discipline Rule 24, the attorney general, the Disciplinary Commission or the State Bar Association can ask the court to enjoin unauthorized practice.
• Licensed brokers and agents are separate. The real estate licensing law does not apply to “acts of an attorney which constitute the practice of law” (IC 25-34.1-3-2(b)(1)). A licensed agent may sell, list and negotiate for consideration, but the same statute does not turn that license into permission to give legal advice.

Who runs the closing in practice?

The texts we read do not say who must conduct the closing, so Indiana buyers and sellers should read their purchase agreement and lender instructions. What the law does show is the set of people around a closing:

• The title insurer. Indiana’s title insurance chapter defines a “title search” (an examination of public records for ownership, liens, encumbrances and defects), a “title policy” and a “closing protection letter,” which spells out how far a title insurer answers for errors or misconduct of its agent at closing (IC 27-7-3-2). For how policies work, see title insurance explained.
• The lender. For a mortgage, the lender must give you the Closing Disclosure at least three business days before you close (CFPB). The form lists final loan terms and closing costs. See closing costs in Indiana.
• The preparer of the deed. The county recorder may accept a deed or mortgage only if the name of the person (and agency, if any) that prepared it appears at the end, in the form “This instrument was prepared by (name).” Social Security numbers must be redacted (IC 36-2-11-15). The rule asks for a name; it does not say that name must belong to a lawyer.

What does an attorney cost?

No Indiana statute or agency we read sets an attorney’s fee for a residential closing, so we cannot give a typical figure. Ask any lawyer how the fee is calculated and what the total will be, in writing, before you hire. Any such fee appears on your Closing Disclosure if the lender requires the lawyer; see our guide to closing costs.

When is a lawyer worth considering anyway?

The Indiana disclosure form itself tells buyers and owners that they “may wish to obtain professional advice or inspections” and to provide for them in the contract (IC 32-21-5-7). A lawyer is the professional Indiana authorizes to give that legal advice. Reasons buyers and sellers commonly ask for one include:

• a contract with terms you do not understand or that someone wants to change;
• a title search that turns up a lien, an unpaid judgment or an unclear owner;
• a sale involving an estate, a trust or co-owners, where several of the disclosure exemptions in seller disclosure in Indiana apply;
• a seller facing foreclosure; see foreclosure in Indiana;
• a dispute after closing about an undisclosed defect.

These are our suggestions, not a rule of Indiana law. Your lender, or the contract, may require counsel even though the statute does not.