Sec. 16. (a) The execution and recording of a wrongful or erroneous certificate of release by a title insurance company or a duly appointed agent with authority from a title insurance company does not relieve the mortgagor, or anyone succeeding to or assuming the interest of the mortgagor, from any liability for the debt or other obligations secured by the mortgage that is the subject of the wrongful or erroneous certificate of release.

     (b) Additionally, a title insurance company or an appointed agent with authority from a title insurance company that wrongfully or erroneously executes and records a certificate of release is liable to the mortgagee, or the assignee of the mortgagee if the mortgage has been assigned, for actual damages sustained due to the recording of a wrongful or erroneous certificate of release.

[Pre-2002 Recodification Citation: 32-8-15.5-16.]

As added by P.L.2-2002, SEC.14.

Terms Used In Indiana Code 32-29-6-16

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • mortgage: means a mortgage or mortgage lien on an interest in real property in Indiana given to secure a loan in the original principal amount of not more than one million dollars ($1,000,000). See Indiana Code 32-29-6-1
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • mortgagee: means :

    Indiana Code 32-29-6-2

  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • mortgagor: means the grantor of a mortgage. See Indiana Code 32-29-6-4
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • title insurance company: means a corporation or other business entity authorized and licensed to transact the business of insuring titles to interests in real property in Indiana under IC 27. See Indiana Code 32-29-6-8
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