Buying property? Be aware! Do not take this step without doing this critical thing first

Buying property? Be aware! Do not take this step without doing this critical thing first

Homebuyers generally look at all angles to avoid any kind of fraud while buying their dream property. However, it has been found that fraudsters are also vigilant about the points that a homebuyer looks at while buying a residential property. Therefore, after so much of checks and cross-checks, the cases of property title related discrepancies in regard to real estate properties are still existing and homebuyers have been running from pillar to post to find out how they can avoid such property title related problems if it occurs after they buy their dream home. For them, an ideal solution is getting insurance for the same. Yes, such a thing exists! According to experts, Title Insurance can help homebuyers avoid any kind of property title related discrepancies.

Speaking on the ways for home buyers to avoid property title related discrepancies after buying their home, Rahul Grover-CEO at SECCPL said, “Prior to understanding the concept of ‘Title Insurance’ one needs to be clear about its very essence. It refers to the legal ownership over and the right to deal with, use, and dispose of the property. When a property is purchased, the homebuyer acquires its title/ownership. However, there are several cases where discrepancies with regard to title transfers have been recorded. In order to prevent a buyer from such hazards, title insurance acts like a confidence booster and a secure safety system. There are innumerable benefits that a property purchaser draws by opting for title insurance.”

Grover listed out the following benefits that a homebuyer can avail through title insurance:

Meets the Statutory Compliance of RERA

Real Estate (Regulation and Development) Act, 2016 (RERA), makes it of utmost importance for developers, constructors, landowners and homeowners to purchase title insurance. The insurance adds a protective layer to the real estate business and works towards easing the process of real estate financing and credit availability. If a homeowner possesses the insurance, it increases the value of their property in terms of collateral and makes it seamless for them to obtain credit facilities.

Cuts Homebuyers Litigation Costs

Ambiguity in the property title, unpaid property taxes, and spouse’s claims on property discovered after purchase might draw huge financial costs. In order to overcome such troubles, title insurance is a must-have. The cost of such litigation can highly burden an individual, but title insurance helps carry the burden by covering legal expenses. These include the lawyer’s fees, legal documentation expenses, settlement costs and several others. Some insurers also assist with out-of-court settlements.

In India, there isn’t any digital record system that efficiently tracks down the ownership record of a property. In the absence of an organised system, there are several frauds pertaining to past property title charges or unclear land titles. The insurance acts as a shield against such property mishaps, and hence, becomes a rescue remedy for home buyers. Furthermore, the policy also provides a track record of the property, thereby allowing the home buyer to be safe from such contingencies.

Adds Value to Your Time

Property involves a humongous cost, and once involved in a related feud, the entire process turns out to be a hassle in itself, along with incurring additional costs. Insurance companies provide legal assistance, and most of them also help home buyers in making out of court settlements. These policies assist in tackling disputed ownership issues in a very cost-effective manner. The most important advantage is that title insurance is a one-time investment, but acts as a guardian for over a period of seven years.

Adds a Safety Quotient to Residential Property

No home buyer would be willing to invest in a property that does not seem secure or trustworthy. If developers avail title insurance, any ownership related troubles arising during the construction of the property can be curbed. Title insurance also enhances the credibility of a property and adds to the confidence of house financing companies, subsequently making it easier to obtain funds to make property oriented transactions.

Can Apply To Non-RERA Cases Too

The very concept of title insurance is known to meet the mandates of RERA, but it can be purchased even for properties that are not registered with RERA, and have been built eons ago. Anyone can obtain title insurance, especially in the case of doubts regarding the ownership of property. It is always recommended that home buyers be safe than sorry, and hence opt for title insurance, in order to ensure a safe and secure property investment.