The Real Estate Regulation and Development Act, 2016 (RERA) has been implemented for almost a year. It has not benefited a lot in the past year. But, a good thing has happened. It has started the rera-title insurance. All new and registered properties in Rera are now required to buy title insurance. Will this help home buyers? Let’s find the answer.
General Insurance Company HDFC Ergo has recently introduced ‘Title Insurance Policy’. This is the first product of its kind in the country’s private insurance segment. It provides protection against harm to the developer and home buyers. The policy covers the loss due to the problem in the title or the risks associated with it. Challenging title or proprietary rights on behalf of the third party, this kind of problem arises.
Before we tell you what is covered in title insurance, you can see why such a product is needed.
Controversy due to property title: Not getting home occupation from time to time is still the biggest problem of home buyers. This also increases when the project falls into a dispute. One of the biggest reasons for this kind of controversy is the claim on the other person’s land on which the project is being formed.
Such disputes are usually caused by a claim on title. The title shows the proprietary rights to an asset. This property is proven right through property papers. The title changes every time the sale or purchase of a property. Because of this, there are problems in the title.
Surendra Hiranandani, CMD, House of Heranandani says that access to land records in India is not easy. The biggest reason for this is the lack of digital infrastructure. The cases of wrong records of land have also increased. The reason is that in the last few decades, land prices have increased very fast.
Court have enough time and money to deal with such disputes. This thing is not applicable only with new constructions. This problem may also occur in buying someone else’s house.
What is cover in Title Insurance?: Unlike other insurance products, insurance is not limited to future events in title insurance. Simply put, the titles insured is not covered before the beginning of the policy, issues are also covered.
There may be some problems with the title. It is possible that apart from the insured, the property title is of someone else. Or the first property of the wrong way has been purchased. These things affect the rights of the insured on the title.
Cover Duration: Even if the initial costs have to be raised by the builder, but in the later stages its responsibility can be on the society. Anurag Rastogi, member of Executive Management, HDFC Ergo General Insurance, says, “Usually the payment of premium for the whole policy period is lump sum.The period can be from 7 years to 12 years. At the end of the policy, the housing society 7 Can renew the policy for a period of 12 years. ”
What is the advantage for home buyers?: By the way, title insurance is not available to the landlords of own land. But, the home buyers of the Society will benefit from it. Once the builder purchases the title insurance policy by paying the premium, then it is later handed over to the organization of the allocation of the housing society. Later they become beneficiaries of the policy. It covers more than 5 million rupees.
Will this increase property prices?: The cost of buying insurance is cost. It is therefore possible to increase the price of title insurance plan property. In fact, the premium of such a policy depends on many things.
What you should do?: There is no option for RERA registered builders. They have to take title insurance only. Rastogi says that the need for title insurance has started with RERA. But, it can also be purchased for those properties which are not registered in RERA. These properties can be from a few years ago.
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