Buying Property at Auction in Indiana: What You Must Know About Title Insurance
Missy Horner
President, Empire Title Services | 20+ Years Experience
Auction Property Title Risks in Indiana
Tax sales: Properties sold by the county for unpaid taxes — may still carry other liens
Sheriff's sales: Foreclosure auctions — conveyed without warranty, title research essential
Online auctions: Widely varied quality — always get a title search before bidding
Quiet title: Often required after tax deed before title insurance is available
Questions before you bid? Call Empire Title: (765) 935-9966
Indiana property auctions offer potential bargains — but they come with title risks that regular home purchases don't. Understanding those risks before you bid could save you from a very expensive mistake.
Empire Title Service regularly helps investors navigate the unique title complexities of auction properties. Here's what you need to know.
Types of Auction Sales in Indiana
Indiana County Tax Sales
Held annually by county treasurers for properties with severely delinquent taxes. Buyers receive a tax deed after the redemption period expires. The deed does NOT eliminate all other liens — federal IRS liens, for example, can survive a tax sale. A quiet title action is typically required before title insurance is available.
Sheriff's Sales (Foreclosure Auctions)
Mortgage foreclosure sales ordered by an Indiana court. The buyer receives a Sheriff's Deed — without warranty. Some liens survive (those senior to the foreclosed mortgage). A title search is critical to identify surviving liens and encumbrances before bidding.
Estate Auctions
Property sold through a probate estate auction. Usually results in a Personal Representative's Deed with limited warranty. Title insurance is generally available after a full title search, but buyers should understand what the deed does and doesn't guarantee.
Online Real Estate Auctions
Platforms like Hubzu, Auction.com, and county online portals vary widely in how well they document title. Always perform a full title search before bidding — don't rely on the auction platform's representations about title.
What Is a Quiet Title Action?
Many tax deed properties cannot receive standard title insurance until a quiet title action has been completed. This is a court proceeding that legally establishes the current owner's clear and exclusive right to the property, eliminating any competing or uncertain claims.
Filed in
Indiana Circuit or Superior Court in the county where the property is located
Timeline
Typically 3–6 months from filing to completion
Cost
Requires an Indiana real estate attorney — costs vary by case complexity
Empire Title's Role with Auction Properties
The Golden Rule: Research Before You Bid
Auction buyers who win a property without first researching the title can find themselves owning a property burdened by liens they didn't know about, or facing a lengthy and expensive quiet title process. A pre-bid title search from Empire Title is far less costly than discovering problems after you've paid auction day prices.
Frequently Asked Questions
Can you get title insurance on auction property in Indiana?
Yes, but it depends on the type of auction and the condition of title. Properties purchased at Indiana county tax sales often receive a tax deed rather than a warranty deed — and title companies may require a quiet title action before issuing standard owner's title insurance.
What is a quiet title action in Indiana?
A quiet title action is a court proceeding in Indiana that legally establishes the owner's clear right to a property, eliminating competing claims. It is often required after a tax deed purchase before a title company will issue standard title insurance. The process typically takes 3-6 months and requires an attorney.
What are the risks of buying at a tax sale in Indiana?
Indiana tax sale buyers face several title risks: existing liens that survive the tax sale (IRS liens, for example), improper notice to prior owners (which can void the deed), outstanding mortgages in some cases, and pending legal challenges from prior owners within the redemption period.
Does a sheriff's sale deed in Indiana give clear title?
A sheriff's sale deed (from a mortgage foreclosure) typically conveys only the interest the foreclosing party had — without warranties. Title searches on foreclosure properties are strongly recommended, and some title companies require title examination before issuing insurance on sheriff's deed properties.
Missy Horner
President, Empire Title Services
With over 20 years of experience in Indiana and Ohio real estate closings, Missy Horner leads Empire Title Services in providing expert title insurance, property searches, and closing coordination. A trusted resource for real estate agents, lenders, and homeowners throughout Wayne, Randolph, and Henry counties.