Know how Title Insurance Protects the Interest of the Homebuyers
Jul 09, 2018 Legal Guidance
There has been a positive wave going on in the real estate sector since the RERA has come into full force. With a view of making things more comfortable for the home buyers, title insurance is being made compulsory for the registered developers. As of now, the lawyer issues the title insurance letter which can have no accountability.
Before moving further, lets’ understand what title insurance is. Since RERA is a reality now, this has given insurance companies a chance to provide policies that can safeguard the interest of homebuyers. The theory of title insurance is laid down in such a way that it preserves the benefits of the homebuyers, lender and investors against property issues. It protects the property owner against the property frauds caused due to property matters related to defects in the property, property disputes and frauds.
Before moving further, lets’ understand what title insurance is. Since RERA is a reality now, this has given insurance companies a chance to provide policies that can safeguard the interest of homebuyers. The theory of title insurance is laid down in such a way that it preserves the benefits of the homebuyers, lender and investors against property issues. It protects the property owner against the property frauds caused due to property matters related to defects in the property, property disputes and frauds.
Title insurance coverage
Title insurance is not a common term in the Indian real estate market. Therefore, the insurance companies are trying hard to factor the challenges they will face in the domestic market as few states still lack the digital records.
Provisions provided by the title insurance company
- Compensation of loss from forgery, fraud, failure of any person or entity to have a valid conveyance of transfer, improper creation, execution, sealing, stamping of documents.
- The insurance of title will cover defence cost such as litigation proceedings is challenged in court.
- Out of court settlement which includes the solution to be made to the other parties provided by the petitioner should not be the co-owner, co-borrower of the property.
Benefits that the homebuyer will have
The real estate developer will have to take up the policy at the time of registration, and the premium paid until the construction gets completed. Afterwards, the insurance gets transferred to the Apartment association along with the power of attorney and all the essential documents.
The insurance, after that, will have to be renewed by the registered authority of the project.
The insurance, after that, will have to be renewed by the registered authority of the project.
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