Closing costs in Indiana come from a mix of state-set fees, title charges and negotiated items. Here is what each one is, who usually pays it, and what's actually set by law versus by the purchase agreement.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. I'm not a lawyer or a title agent, and this page isn't legal advice. It covers resale homes in central Indiana, with a source on every fee amount. Your title company's settlement statement is the final word on any deal.
The first thing to know: in Indiana, who pays most closing costs is set by local custom and your purchase agreement, not by state law. The Indiana Department of Insurance says so directly about title premiums. So everything below marked “usually” is negotiable.
Both, and the split is negotiable. The Indiana Department of Insurance says local custom, not state law, usually decides who pays title premiums, and buyer and seller can negotiate it. The Indiana residential purchase agreement has a checkbox for who pays the owner's title policy: buyer, seller, or split equally.
A common central Indiana pattern is that the seller pays for the owner's title policy, the buyer pays for the lender's policy, and the closing fee is split. Read your own purchase agreement; that's what controls.
A lender's policy protects the mortgage lender, and its coverage shrinks as the loan is paid down. An owner's policy protects your ownership for as long as you own the home. Either way, the premium is paid once, at closing, with no monthly premium.
Buying both together often qualifies for a simultaneous-issue rate, so ask the title company about it and about other discounts. The Indiana Department of Insurance publishes a title insurance rate comparison tool with filed rates and common charges by insurer.
Yes. The Indiana Department of Insurance says buyers can choose any title insurer, though a lender can veto the choice. The Indiana residential purchase agreement also says a seller can't make the deal depend on the buyer using a particular title company.
A few closing charges are set by statute:
Sales Disclosure Form filing fee: $20, paid to the county auditor (IC 6-1.1-5.5-4). Buyer and seller both complete and sign State Form 46021 whenever a deed for a sale is recorded. The buyer can use the same form to apply for the homestead deduction. County auditors also charge their own transfer fee on each deed (Boone County lists $10 per parcel), so the auditor line on a settlement statement often reads $30.
Recording fees: $25 to record a deed and $55 to record a mortgage, flat fees under IC 36-2-7-10. Some counties add their own surcharges, so check the county recorder.
Title Insurance Enforcement Fund Fee (TIEFF): $5 per title insurance policy, paid by whoever buys the policy (IC 27-7-3.6-7).
No transfer tax. Indiana doesn't charge a real estate transfer tax, state or local. Marion County does add its own charge when documents are recorded, so expect a little more on an Indianapolis closing.
A closing protection letter (CPL) is issued by the title insurer and protects the lender, and often the buyer and seller, against certain mistakes or misconduct by the closing agent handling the money. Title companies in Indiana charge a CPL fee on residential closings. The Indiana Department of Insurance notes it's usually charged per letter, though some companies charge one flat fee per transaction, so a closing with a lender can carry more than one.
Indiana property taxes are paid a year behind — the bill paid in a given year covers the prior year, due May 10 and November 10. So at closing, the seller usually credits the buyer for taxes that have built up but aren't due yet, rather than the buyer reimbursing the seller.
The standard Indiana purchase agreement has the seller pay taxes due before closing and prorates the current year's taxes through the day before closing, using the most recent certified rates. It also warns buyers that the next bill can be much higher than the last one, especially for new or reassessed homes. My Indiana property tax guide explains why.
Often. Indiana law voids most private “transfer fee covenants” recorded after June 30, 2011, but fees paid to homeowners and condo associations under their governing documents are expressly allowed (IC 32-21-14). Transfer, resale-certificate and capital-contribution fees vary by association, and the purchase agreement sets who pays. Ask for the association's fee schedule early.
If you're financing, your lender's charges — origination, appraisal, credit report — and prepaid items such as homeowners insurance and an escrow deposit are usually a large share of a buyer's closing costs. They vary by lender and loan, so compare Loan Estimates rather than relying on any rule of thumb. Seller concessions toward those costs are negotiable within your loan program's limits.
These come from the settlement statements on 13 of my own closings from 2025 and 2026, in Hamilton, Marion, Hendricks, Johnson, Bartholomew and Allen counties, with sale prices from $190,000 to $431,000. They're real examples, not a survey. Your title company and lender will quote their own numbers.
Owner's title policy: $682 to $1,283, or about $2.40 to $3.60 per $1,000 of sale price (around $3 per $1,000 in the middle). On a $300,000 home, that works out to roughly $725 to $1,075. The seller paid it on most of these; the purchase agreement decides. Each title insurer files its own rates, so two policies on similar prices can differ by a few hundred dollars.
Lender's title policy: $100 to $120 on every loan, paid by the buyer, because it was issued alongside the owner's policy.
Lender-required title endorsements: $50 each, usually two or three per loan, so $100 to $150 for the buyer.
Closing protection letters: $25 to $35 per letter. A financed buyer usually paid for two ($50 to $60), and the seller paid for one ($25).
Title company service fees (closing, settlement, processing, search and exam, document prep, delivery, fraud prevention): sellers paid $550 to $925 on most closings, around $625 in the middle. Buyers paid $360 to $610 on most financed purchases, around $540 in the middle. On one closing the buyer paid well over that because the contract shifted the seller's customary fees to the buyer.
Recording: $80 for a financed buyer to record the deed and mortgage ($25 + $55), $25 for a cash buyer, and $100 in Marion County. The electronic recording charge added $5 to $10.50.
Sales disclosure and auditor fees: $30 on every closing, paid by the buyer.
Title Insurance Enforcement Fund Fee: $5 per policy, as the law sets.
Transfer tax: none on any of them.
HOA: where there was an association, processing or transfer fees ran $25 to $175 per side, and a few associations also charged the buyer a $175 new-owner fee or an advance assessment.
Brokerage fees: in my experience, some brokerages, including mine, charge a flat administrative or transaction fee of $200 to $1,000. It's on top of commission, so ask your agent about it up front.
Lender fees: the lenders' own charges (origination, underwriting, processing, credit report and the like) ran $1,227 to $2,433 on these loans. That's before the appraisal, any points, mortgage insurance, prepaid interest and escrow deposits, which can add far more.
Sellers: before you list, I give you a written net sheet with commission, title charges, prorated taxes and any expected concessions, so you know what you walk away with. Buyers: your lender's Loan Estimate covers the loan side, and I'll help you fill in the title, tax and HOA pieces for the specific house. To add it up yourself first, try my buyer net sheet or the seller net sheet.
Tell me about the house. If you're selling, I'll send a written net sheet with every line itemized. If you're buying, I'll help you add up the pieces your Loan Estimate doesn't show.
I'm not a lawyer or title agent; your title company's settlement statement is the final word.
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Estimates only; your title company's settlement statement is final.
This page is general information, not legal advice. Fee amounts are from the Indiana Code, the Boone County Auditor fee schedule, and Indiana Department of Insurance as of September 2026 and can change. Your title company's settlement statement is final.