Recap: The Legal Basics of Property Ownership

On January 12, 2026, Gary Townmakers welcomed residents to a deeply informative Townmaker LAB featuring Justin Harris, JD, CEO of Ngenuity X, a title and real estate data mining company. The session, “The Legal Basics of Property Ownership,” unpacked the real‑world steps required to safely buy, sell, inherit, or invest in property in a city like Gary, where off‑market deals, heirs’ property, and environmental concerns are part of the landscape. Throughout the evening, Justin returned to one central theme: due diligence is not optional. It is your protection.

Why Due Diligence Matters

Justin opened by breaking down the stages of a real estate transaction. While many people focus on finding a house or securing financing, he emphasized that Stage 4–5, the due diligence phase, is where deals are made safe. This phase includes home inspections, title searches, title examinations, legal underwriting, and verifying that the seller truly owns the property. 

Justin stressed that skipping steps, especially inspections, can lead to expensive surprises. He shared stories of buyers who opted for the cheapest inspection or none at all, only to discover significant issues like flooding, roof leaks, or structural problems months later. A thorough inspection, ideally during rain or snowmelt when hidden issues reveal themselves, is far cheaper than repairing a disaster.

His advice was simple:  “If you can afford the more thorough inspection, do it. It’s cheaper than a $30,000 mistake.”

Understanding Title: Who Really Owns the Property?

One of the most misunderstood parts of real estate is the difference between title and deed. The title represents legal ownership, while the deed isthe document that transfers that ownership. A deed alone does not guarantee that the seller has the right to sell. The title must be examined to confirm that the seller actually owns the property, not just assumed. This means checking past deeds, ensuring all heirs are accounted for, proving there are no judgments or liens, verifying documents were properly notarized, and confirming the legal description is correct.

He shared multiple real‑world examples where properties were sold by someone who thought they owned them, but didn’t. In one case, a seller tried to bypass other heirs, only for the issue to resurface years later, and the sale stalled for 18 months.

Takeaway:  If a seller is rushing you, there’s usually a reason. Slow down and verify everything.

Warranty Deeds vs. Quitclaim Deeds

The conversation then moved into the different types of deeds. A warranty deed offers the highest level of protection because the seller guarantees they own the property and that there are no hidden liens or claims. A limited warranty deed only guarantees the seller’s period of ownership; past issues may still exist. A quitclaim deed offers no guarantees. It simply transfers whatever interest the seller may have, if any. Quitclaim deeds are common in off‑market deals, family transfers, and bank‑owned properties, but they require extra caution. A quitclaim deed without a title search is a major red flag, though Justin noted that quitclaims can be perfectly acceptable when paired with proper due diligence.

Why Title Reports and Title Examinations Are Different

Justin also explained the difference between a title report and a title examination. A title report lists 30 years of recorded activity, including liens, judgments, and mortgages. A title examination goes deeper, reviewing documents for accuracy, verifying legal descriptions and signatures, and ensuring compliance with county requirements. If someone chooses not to use a title company, Justin urged them to at least obtain both a report and an examination.

Mechanics Liens, Expired Mortgages, and Other Hidden Issues

Justin walked participants through several common (and often surprising) title complications:

• Mechanics liens from unpaid contractors

• Expired mortgages that were paid off but never properly released

• Judgments that attach to property

• IRS liens

• Municipal citations

Some liens expire automatically; others must be re‑recorded; some can be wiped out through legal action. The key is knowing which is which, and that’s where professionals come in.

Quiet Title Actions: When You Need the Court to Clear Ownership

When title issues cannot be resolved through normal means, a quiet title action may be required. Justin described quiet title actions as legal proceedings used to resolve disputes, clear old liens, address missing heirs, fix improperly recorded deeds, or finalize ownership after tax sales. Justin emphasized that tax sale buyers almost always need a quiet title action to resell or finance the property. Without it, many title companies will refuse to insure the transaction.

Family Property, Probate, and the Importance of a Will

A significant portion of the discussion focused on heirs’ property, one of the most common sources of title problems in Gary. Justin explained:

• If a homeowner dies without a will, the property must go through probate.

• A power of attorney cannot be used to transfer property after someone dies.

• Family disputes, missing heirs, or unclear ownership can stall a sale for years.

He urged residents to create a will, use responsible heirs, keep property taxes current, and avoid informal “handshake” agreements. “If it’s not in writing, it didn’t happen.”

Environmental Restrictions and Institutional Controls

Toward the end of the session, the conversation shifted to environmental concerns, an especially urgent issue in Gary. Townmakers shared that within a one‑mile radius of 1500 Grant Street, more than 280 sites show environmental concerns. Justin emphasized the importance of checking state environmental databases, understanding institutional controls, and knowing whether digging, building, or disturbing soil is restricted due to historical contamination. 

Environmental due diligence, he noted, is just as necessary as legal due diligence.

Final Advice: Protect Yourself, Protect Your Investment

Justin closed with a powerful reminder:

• Use professionals—title companies, attorneys, realtors, inspectors.

• Budget for due diligence

• Expect the process to take time.

• Don’t let excitement override caution.

• Document everything

• Understand that real estate fraud is rising nationwide

Above all: “Your closing costs should not be cheaper than your iPhone.”

What’s Next for Townmaker LAB

Townmakers is planning a follow‑up LAB focused on Gary’s updated zoning code, which is currently moving through the approval process. The new code aims to expand what’s possible in residential and commercial development—a significant shift for a city ready to grow.

Details will be announced soon.