As the property market is expanding its purview, the title claims and ownership issues are becoming more riskier than ever. Many business articles have noticed the fact that one of the largest and most ignorant frauds in the Indian Real Estate market is passing on the defective titles to new buyers. When the deal is closed, the buyer will get legal notice of being a trespasser to the property, which takes place because of the defective title problems. This gives the dire need to get Land Title Insurance as a policy which will help insuring the purchasers against the hidden title errors that arise from the misrepresentation from the sellers. However, does it really pay off to the buyers? This is a concise explanation provided by Neevilas of the concept, its advantages, shortcomings and the ways it would be applied in the contemporary Indian real estate market.
What Is Land Title Insurance?
Title insurance refers to a single premium policy that secures property holders against financial loss caused by title defects, liens, ownership issue, mistakes in the public records, and any other problems, which would otherwise not be discovered in the initial due diligence. As opposed to other types of insurance products that cover risks that may occur in the future, title insurance covers risks, which were already present before the issuance of the policy but were subsequently discovered. As reported by the experts of Neevilas this extra level of coverage can be comforting to many of the buyers whose major concern is investing a lot of their savings or making huge loans.
The Title Insurance in Practice
As reported by HAR.com in the real estate market of United States of America having a title insurance is mandatory requisite in the instances of mortgage approvals by the lenders. In the cases where a title insurance is being taken by the homeowner, the issues arising about the title after the deal is being finalized will be covered by the insurance. Although in India, these kinds of insurance are still in infancy phases where regulators and insurers are looking forward in popularizing it. The Neevilas says that in the case of first-time buyers or those who are buying new properties in a region with a complicated land history, owner title insurance may provide them with peace of mind other than that of legal verification.
The Win-Win Deal for Buyers
Land title insurance is not necessary with every deal; however, in a place where title issues are still emerging even after the deal is closed, it should be considered heavily. Title insurance can provide financial protection as well as assurance of ownership because it insures against these concealed risks that a legal check would not detect. To help in making such decisions prudently, the buyers can adopt the help of trusted real estate advice and tips to Neevilas, which would help them balance the value of such insurance in their particular case
