Title Insurance has tremendous scope in India
“Title insurance is a multi-billion dollar industry thriving in the Americas and Europe. “India is yet to make an entry into this circle as the Indian real estate is still unorganized to a certain degree”, says a realty expert from Arun Dev Builders. For those who don’t know what title insurance is, it’s a kind of insurance that cover financial losses against defects and issues in a title of an immovable property. In this, the insured party is also shielded from past-event damages, apart from future losses.
There are two kinds of policies under Title Insurance: owner and lender. If you opt only for the lender’s title insurance, your mortgage will be paid off even if you lose your home to a previous unknown lien. However, according to Arun Dev Builders, you won’t be reimbursed for the payments you made for the house. The owner policy can deal with this problem, a reason why people buy both the policies.
The owner policy comes in varieties. A standard owner policy covers the price of your home. Inflation is a factor that a lot of people miss. There have been cases where inflation has doubled the price of a certain property. For that, a special owner policy called ‘inflation rider’ can be opted. Before you proceed with the policy purchases, the selling company will search through the public records for past deeds, court judgments, tax records, wills, etc. A preliminary title report is generated that cites all the hiccups that come with the possession of the house. If they can be fixed, they’re fixed; else, the sale is called off.
Title insurance will be instrumental in the restoration of the confidence of the people in Indian real estate. As explained by Arun Dev Builders experts, the untapped potential of title insurance can make functions a lot more transparent as well as trust able. Market players and customers will benefit from it alike.