Title Insurance: For the Developers’ Benefit
Very few real-estate developers in India have obtained title insurance cover, although title insurances are desirable for many reasons, writes DIVYA MALCOLM.
Although title insurance came to be spoken of in the Indian real-estate sector on account of the compulsory provisions of the Real Estate Regulation & Development Act 2016 (RERA), developers and project proponents stand to benefit more. Even concession contracts entered into with the government often get stalled on account of title issues. Yet, paradoxically, there are no takers for title insurance. The ensuing paragraphs attempt to construct the title paradigm: What is meant by good and marketable title; why title insurance has not picked up; title issues in India; and SOS measures that must be implemented.