• Menu
  • Skip to left header navigation
  • Skip to right header navigation
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Before Header

Contact Us (317) 692-9000

  • Facebook
  • Twitter
  • LinkedIn

Directions

Kroger Gardis Regas, LLP

Kroger Gardis & Regas, LLP

  • Firm
    • About Us
    • History
    • KGR in Our Community
    • TAGLaw®
  • Professionals
  • Practice Areas
  • Information
    • Blog
    • Doing Business in Indiana: A Reference Guide
    • Representing Buyers and Sellers in Acquisitions of Privately Held Companies
    • Receiverships & Class Actions
  • Legal Lessons
    • Courses
    • Login
    • Account
  • News
  • Careers
  • Contact
  • Search
  • Firm
    • About Us
    • History
    • KGR in Our Community
    • TAGLaw®
  • Professionals
  • Practice Areas
  • Information
    • Blog
    • Doing Business in Indiana: A Reference Guide
    • Representing Buyers and Sellers in Acquisitions of Privately Held Companies
    • Receiverships & Class Actions
  • Legal Lessons
    • Courses
    • Login
    • Account
  • News
  • Careers
  • Contact
  • Search
You are here: Home / Business / Update: Indiana’s New Witness Requirement on Recorded Documents
Recorded Documents

Update: Indiana’s New Witness Requirement on Recorded Documents

August 26, 2020 //  by Madalyn Kinsey

Change of an ‘Or’ to ‘And’ Cause Challenges

The recent rewording of a law has caused quite a stir in the business and real estate communities. That’s because changes to Indiana Code 32-21-2-3(a), effective July 1, 2020, now require witness signatures on recorded documents.

Senate Enrolled Act 340, passed by the Indiana Senate, merely changed an “or” to an “and” but by so doing, it changed this well-established law to require a common law “proof” of a disinterested party to the transaction serving as a witness to the execution of an instrument. This requirement caught many off guard, necessitating re-documenting transactions or hurriedly changing forms.

The perceived requirement of having the witness swear that he or she is not a party to the real estate transaction (deed, mortgage, lease, etc.) disclosed by the instrument and does not “benefit” from the transaction adds a layer of complexity to closings. An additional person must now participate in the closing process and swear to an oath. Many financial institutions are reluctant to have their employees give an oath, which rules them out as witnesses. Furthermore, it’s unclear how “benefit” is to be defined in this scenario.

Could a year-end bonus based on loan production technically constitute receiving a benefit from this one transaction? While certain financial institutions may not permit their employees to witness signatures, title companies appear to be fine with their employees acting in this role.

Rumors have swirled that many of Indiana’s 92 county recorders are ignoring the statute and accepting documents without witness signatures, provided the document itself is properly notarized. A national title company representative informed us recently that only 20 Indiana county recorders are requiring witness signatures, with most of those in Lake, Morgan, St. Joseph, Elkhart, Jennings, Dubois, Pike, and Posey counties.

The Indiana Recorders Association is working with the Indiana State Bar Association and the Indiana Land Title Association on legislation hoped to be introduced in January 2021. The goal is to make clear what is required and hopefully do away with the witness requirement. Other more immediate options considered have been litigation and an executive order from the Governor, but both have been abandoned.

This issue appears to be just another challenge of conducting business in 2020. Stay tuned…

Category: Blog, Business, Real EstateTag: Madalyn Kinsey

Previous Post: «Deed Signing Notarize & Prove Recorded Documents in Indiana Effective July 1, 2020
Next Post: COVID-19: Does Your Family Have A Plan? Living Will»

Primary Sidebar

If you are interested in our services please fill out the form below.

    Your Name (required)

    Your Email (required)

    Phone (required)

    Subject

    Your Message

    RECENT POSTS

    Practical Legal Issues regarding Vaping and Schools

    The tobacco use intervention strategies of the past may have low …

    The Federal Trade Commission Announced a Ban on Non-Compete Agreements: What Does That Mean for Your Business?

    We won’t bury the lede: it could be huge, but it’s also probably …

    2 New Attorneys, 1 Paralegal Join KGR

    KGR is thrilled to start the New Year with two new attorneys Wes …

    KGR Obtains Preliminary Injunction Against City of Bloomington in Free Speech Case

    Turning Point USA (TPUSA) and its local chapter on the Indiana …

    KGR Attorneys File Lawsuit Against USA Track & Field to Advance Athlete Health & Safety

    KGR’s Sports and Entertainment Law Team, led by KGR Partner Bill …

    Footer

    Indianapolis Office

    Kroger, Gardis & Regas, LLP

    111 Monument Circle, Suite 900 Indianapolis, IN 46204

    (317) 692-9000
    (317) 264-6832
    Directions

    Connect with us!

    • Facebook
    • LinkedIn
    • Twitter

    Newsletter

    Select list(s) to subscribe to


    By submitting this form, you are consenting to receive marketing emails from: Kroger, Gardis & Regas, LLP, 111 Monument Circle, Indianapolis, IN, 46204, http://www.kgrlaw.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

    Copyright © 2023 · Kroger, Gardis & Regas, LLP · Log in