Indiana Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Indiana exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Indiana uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Indiana law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Indiana practice.
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Indiana Escrow & Title — Practice Questions & Answers
96 questions on Escrow & Title from the Indiana real estate question bank. First 10 are free — sign up to unlock all 96.
Q1. A quitclaim deed conveys:
Explanation
A quitclaim deed conveys only whatever interest the grantor actually has in the property — with no warranties or guarantees of any kind. If the grantor has no interest, the grantee receives nothing.
Q2. In Indiana, when does title to property legally transfer from seller to buyer?
Explanation
Title transfers when a valid deed is properly delivered to and accepted by the grantee. Recording provides constructive notice to the public but is not required for the actual transfer of title between the parties.
Q3. An owner's title insurance policy protects the buyer against title defects that:
Explanation
An owner's title insurance policy protects the buyer (and their heirs) against title defects, liens, or encumbrances that existed at or before the closing date, even if they were not discovered during the title search.
Q4. A judgment lien is created when:
Explanation
A judgment lien is created when a court enters a monetary judgment against a defendant who owns real property. The judgment is recorded in the county where the debtor owns property and becomes a lien on that property.
Q5. Title insurance protects against:
Explanation
Title insurance protects the insured against losses from title defects, liens, or encumbrances that existed prior to the policy's effective date but were not discovered during the title search.
Q6. An owner's title insurance policy protects:
Explanation
An owner's title insurance policy protects the buyer's equity and ownership interest from covered title defects, typically for as long as the owner or their heirs hold an interest.
Q7. A lender's title insurance policy (ALTA loan policy) protects:
Explanation
A lender's title insurance policy protects the mortgage lender's interest up to the amount of the outstanding loan, decreasing as the loan is paid down.
Q8. At closing in Indiana, the deed is typically delivered to:
Explanation
Upon closing, the deed is recorded at the county recorder's office and then delivered to the buyer, establishing the buyer as the new owner of record.
Q9. A cloud on title refers to:
Explanation
A cloud on title is any claim, encumbrance, or lien that raises questions about the validity of the owner's title and may need to be resolved before the property can be conveyed clearly.
Q10. Which of the following would a title search typically NOT reveal?
Explanation
A title search examines public records and would reveal recorded documents; it typically cannot uncover unrecorded claims, which is why title insurance is purchased.
Q11. Prorations at closing are used to:
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