What are seller closing costs made of in Indiana?

Updated: November 12, 2026 · By Mark Dietel, Broker/Owner, Mark Dietel Realty · 11-minute read

Quick answer: Indiana seller closing costs are your loan payoff and liens, the charges your listing and purchase agreements assign you, and any credits or repairs you choose to give the buyer. Under customary Indiana splits the seller pays the owner's title policy and half the closing fee, Indiana has no transfer tax, and a written net sheet gives your exact total.

What we analyzed: Indiana Code 6-1.1-22-9 (property tax due dates), 6-1.1-5.5 (sales disclosure), 32-28-1 (releasing paid liens), 32-29-6 (mortgage release by title companies) and 36-2-11-15 (recording statements); Old Republic Title's Real Estate Laws and Customs guide for Indiana; and the Consumer Financial Protection Bureau's Closing Disclosure guidance, all read November 7 to 12, 2026. Rules change, so confirm current wording with a closing attorney or title company.

Most sellers ask this question with one number in mind: the total that comes off the sale price. We cannot give you that number in a blog post. It depends on your payoff, your contracts and your title company. What we can do is show what the total is made of, who customarily pays each piece in Indiana and who decides it. A net sheet, which is a written estimate of what you keep after every cost, puts the pieces on one page.

We group the items by who controls them. A cost you owe on any sale differs from one you negotiate with an agent or a buyer, and both differ from one you decide alone. Knowing which group a line belongs to tells you where to spend your attention before you list in Marion or Johnson County.

Key takeaways

• Seller closing costs split into payoff items you owe, contract items you negotiate and choice items you decide alone.
• Under customary Indiana splits, the seller pays the owner's title policy, the buyer pays the lender's policy and recording, and the closing fee is divided equally. Your purchase agreement can change any of these.
• Your loan payoff and any liens come out of your proceeds at closing, and the payoff is larger than your last statement balance because interest keeps accruing.
• Agent compensation is negotiable and not set by law, and we do not publish a figure for it or for any closing-cost total.
• Indiana property taxes are paid in arrears, so a closing date in the middle of the year usually means a proration between you and the buyer.
• Indiana has no state deed transfer tax, but every sale needs a Sales Disclosure Form (State Form 46021) before the county auditor will accept the deed.

What are seller closing costs made of in Indiana?

Seller closing costs are the charges that come out of your sale proceeds at closing, plus credits you give the buyer. In Indiana the list usually includes your loan payoff, agent compensation, the owner's title policy, half the closing fee, deed preparation, the property tax proration and any seller concession you grant.

Think of a net sheet in buckets. Payoff items are debts tied to you or the house: the mortgage, liens, past-due taxes and association balances. Contract items are charges you negotiate in your listing agreement or your purchase agreement, such as agent compensation, title and settlement charges, deed preparation and the tax proration. Choice items are the ones you decide alone, such as repairs you agree to or a concession you grant, and some come up only after the buyer's inspection.

Indiana law and local offices shape several lines. Property taxes are paid in arrears under Indiana Code 6-1.1-22-9, and the county treasurer holds the tax record. Every sale needs a Sales Disclosure Form under Indiana Code 6-1.1-5.5: the county assessor reviews it, and the county auditor will not accept the deed without it. The county recorder then records the deed. Your say over contract items is greatest before you sign, and choice items stay yours until closing.

Which closing costs do you owe no matter how you sell?

You owe your loan payoff, any recorded liens, past-due property taxes and association balances on every sale. These are debts tied to you or the house, so they are paid from your proceeds whatever the buyer's financing.

Your payoff is the amount your lender needs to release the mortgage on the closing date. It is higher than the balance on your last statement because interest builds daily until the loan is paid. Ask your lender for a written payoff statement once you have a contract. Indiana Code 32-28-1 requires a lender to release a mortgage once it is paid in full, and Indiana Code 32-29-6 lets the title company record a certificate of release if the lender has not done so within 60 days of payoff.

Liens come next. A judgment or a tax lien must be paid or released before the buyer gets clear title, and the same Indiana chapter requires the lien holder to release it of record once it is paid. Our post on selling a house with a lien in Indiana covers how each type clears. Final utility bills and association dues also belong here. If your neighborhood has an association, request its payoff or status letter early, because each association sets its own turnaround.

Who pays title, settlement and recording costs in Indiana?

Your purchase agreement decides, and Indiana custom is the usual starting point. Old Republic Title's guide lists Indiana's customary splits: the seller pays the owner's title policy, the buyer pays the lender's policy and the recording fees, and the closing fee is divided equally. Indiana has no deed transfer tax. Ask your title company to quote each line and show which side pays it in your contract.

Deed preparation is a seller line on most net sheets because the seller signs the deed. In Indiana a deed must name who prepared it and carry a statement that Social Security numbers were redacted (Indiana Code 36-2-11-15), so the title company or a closing attorney usually prepares it. The table lists each line, its group, who customarily pays and where to get the number.

How do agent compensation and the buyer's agent fit in?

Agent compensation is the one cost sellers most want a figure for, and we do not publish one. Commissions are fully negotiable and are not set by law. What you pay your listing agent is written in your listing agreement, and any amount offered toward a buyer's agent is negotiated in the purchase agreement, and the MLS does not publish it.

Because the number is yours to negotiate, the useful move is to see it in context. A written net sheet shows what you would walk away with at different compensation levels you enter yourself. Our posts on whether a commission is negotiable in Indiana and whether sellers still pay the buyer's agent explain the rules after the National Association of Realtors settlement.

When you interview agents, ask each one to show the compensation line on a net sheet for your address, in writing, before you sign anything. The line should carry the number you negotiated and nothing else.

How does property-tax proration work at an Indiana closing?

Indiana property taxes are paid in arrears, so the tax bill you pay in a given year covers the prior year. Under Indiana Code 6-1.1-22-9, each year's taxes are due in two equal installments on May 10 and November 10 of the following year. At closing, the title company divides what is owed between you and the buyer.

Proration means dividing a bill between seller and buyer by the days each owned the house. The contract sets how it works, and the split follows the county's records. If you close in June, for example, the fall installment will not come due until November, yet you owned the house for part of the year it covers, so the buyer is credited with your share. Your title company shows the exact math on your settlement statement.

Two Indiana details change the picture. First, a homestead deduction on your bill is a benefit for the owner who lives in the house, so a buyer files for their own. Our post on the homestead deduction in Marion or Johnson County covers that filing. Second, if you have an unpaid installment, it is paid from your proceeds. Call the county treasurer before listing so the amount owed is not a surprise.

This is general information, not legal, tax or appraisal advice. Confirm your situation with the Marion or Johnson County Assessor, a CPA or an attorney.

What paperwork sits alongside the money?

Three documents touch your costs: the settlement statement from your title company, the buyer's Closing Disclosure, and the sales disclosure form filed with the county. You sign the seller's settlement statement. The buyer's lender must give the buyer a Closing Disclosure at least three business days before closing, per the Consumer Financial Protection Bureau.

That three-day window helps you too. Once the buyer's Closing Disclosure is final, the numbers you see a few days before closing are often close to the numbers you sign. Ask for a draft as soon as one exists and compare it with your net sheet.

Indiana adds the Sales Disclosure Form, State Form 46021, required under Indiana Code 6-1.1-5.5 whenever real property is sold. The parties sign it, the county assessor reviews it, and it is filed with the county auditor before the deed can be recorded; in practice the title company handles the filing. Separately, the Seller's Residential Real Estate Sales Disclosure (State Form 46234, under Indiana Code 32-21-5) describes the condition of the property. It carries no charge, yet a problem disclosed late can turn into a repair request or a credit on your net sheet.

For the full sequence of dates, see our post on how fast you can sell and close in Indianapolis. For choosing the company that runs the closing, see our guide to choosing a title company in Indianapolis.

What does this look like in Central Indiana?

Take a hypothetical Greenwood home in Johnson County that goes under contract at a price of $300,000, with a loan still outstanding. Nothing below is an estimate of your costs. The table shows the order in which a net sheet works and who customarily pays each line in Indiana, so you can see which entries are fixed, which were negotiated and which you chose.

Read the table from the first row to the last and notice where the lines change. Lines 2 and 3 stay put whatever the buyer offers. Lines 4 through 6 are settled by what you sign. Lines 7 and 8 are yours to decide, and a different offer can move them. Two offers with the same contract price can leave you with different amounts for that reason.

Each choice line trades one thing for another. A concession may help a buyer say yes, and it lowers what you keep. Repairs cost money now and may head off a credit request later. A home warranty has a price and may reassure a buyer who is wary of an older house. Run the net sheet with and without each one, then decide.

When this doesn't apply

This breakdown assumes a standard sale of a house with a mortgage and clear title. It does not fit every sale. If you own the house free and clear, line 2 disappears. If the home is in an estate or a divorce, an attorney or the court may control timing and who signs. If you are selling to a cash buyer, many of these lines still apply, but some, such as agent compensation, may work differently. A purchase agreement can also move any customary split to the other side.

It also does not apply to new-construction purchases from a builder, where the builder's contract sets its own terms. And it says nothing about the buyer's costs, which are a separate list. If you are unsure which situation you are in, ask a title company or closing attorney before relying on any general page, including this one.

What to do next

Start this week. Ask your lender for a written payoff statement, ask the county treasurer what you owe, and ask your association, if you have one, for its letter. Then ask each agent you interview for a written net sheet for your address, with the title lines split by Indiana custom unless your contract says otherwise and the compensation line filled in using your own number.

Prefer to talk? Call (317) 426-9911. Mark Dietel Realty has offices in Southside Indianapolis, Greenwood and Bloomington.

Frequently asked questions

Do I pay the buyer's closing costs when I sell in Indiana?

Only if you agree to. A seller concession is a credit you grant in writing in the purchase agreement. Buyers pay their own lender charges and prepaid items by default. Granting a concession lowers your proceeds, so run the net sheet with and without it before you respond to an offer.

Does Indiana have a transfer tax when you sell a house?

No. Old Republic Title's Indiana customs guide lists the deed transfer tax as not applicable. What Indiana does require is a Sales Disclosure Form for each sale, reviewed by the county assessor and filed with the county auditor before the deed is recorded.

What is a seller concession?

A seller concession is a credit you give the buyer at closing, usually toward their costs. It is negotiated in the purchase agreement and shows as a line on both settlement statements. You decide whether to grant one, and a lender may limit how much a buyer can receive.

What is a prepaid item, and is it a seller cost?

Prepaid items are amounts a buyer pays in advance at closing, such as the first part of homeowners insurance or escrow deposits. They belong to the buyer's side of the settlement. You see them only if you agree to a concession that is meant to cover them.

What happens to my escrow balance when I sell?

If your lender holds an escrow account for taxes and insurance, any remaining balance is returned to you after the loan is paid off. Ask your loan servicer how long that takes. It is separate from the tax proration at closing, so plan for both.

Why is my payoff higher than my loan balance?

Your payoff includes interest that has accrued since your last payment through the closing date, and it can include other amounts your lender is owed. Request a written payoff statement and ask for a fresh one if your closing date moves, since the amount changes daily.

How do I get an exact estimate of what I will net?

Ask for a written net sheet for your address. Bring your latest mortgage statement, your most recent tax bill and any association information. The sheet should list every line, mark who sets it, and show the compensation line using a number you choose. Our post on seller net sheets in Indiana explains how to read one.

When do I get my money after closing?

It depends on how the title company disburses funds and your lender's payoff process. Our post on when you get your money after closing in Indiana walks through the timing, and your title company can confirm the plan for your closing.

Who pays for the owner's title insurance policy?

In Indiana the seller customarily pays for the owner's policy, and the purchase agreement can change that. Read our post on who pays for owner's title insurance in Indiana, then ask your title company to quote it so you can see it on your net sheet before you accept an offer.

This is general information, not legal or tax advice. Confirm your situation with a closing attorney or CPA.

Mark Dietel Realty - offices in Indianapolis (Southside), Greenwood and Bloomington, Indiana.

Sources

• Indiana Code 6-1.1-22-9, property tax due dates
• STATS Indiana, Sales Disclosure Form (State Form 46021, IC 6-1.1-5.5)
• Consumer Financial Protection Bureau, Closing Disclosure timing
• Indiana Code 6-1.1-5.5-3, sales disclosure filing with the assessor and auditor
• Indiana Code 32-28-1, duty to release paid mortgages and liens
• Indiana Code 32-29-6, mortgage release by title insurance companies
• Monroe County Recorder, Indiana recording requirements (IC 36-2-11-15 preparer and redaction statements)
• Old Republic Title, Real Estate Laws and Customs, Indiana customary splits