In a recent event in Attapur, an apartment has completed its construction and was ready for occupancy. While the developer has already sold five among the fifteen flats. Due to some disputes, one of the family members who sold the land to the realtor approached the court while the buyers were in the relevant office for registration of the rest. Affirmative orders were brought by the plaintiff, and it has delayed the process of property registration. This resulted in the uncertainty among those who have already registered and paid half the money in advance.
These disputes were not only limited to Attapur but also in other areas of Telangana since a lot of such problems are being faced on a daily basis. Every year the Greater Hyderabad Municipal Corporation (GHMC) and the Hyderabad Metropolitan Development Corporation (HMDA) permit approximately twelve thousand buildings. Most buildings, however, are engaged in land disputes for various reasons.
Proposed Steps to Protect Buyers
So far, some buyers are not insuring title to the apartment built-in land space and are only insuring for the flats. In the Attapur case, if the buyers have priorily got title insurance for that land, irrespective of court’s verdict, they wouldn’t have fallen into such disputes.
Several years ago, the Central Government insisted on insuring the land itself at the time of purchase, as the title of apartment building sites across the country was disputed. Still, this rule was forsaken by many buyers.
As a resolution, The Insurance Regulatory Development Authority (IRDA) has recently been directed to prepare a report concerning the rising issues. A two-month committee of experts was appointed to address the insurance concerns and take necessary steps needed to make title insurance a mandatory step across the country.
What is Title Insurance?
Title insurance gives assurance for property buyers against loss such as funds, etc. incurred by land title disputes that might occur after purchase. Unlike other insurance products that ensure consumers in the event of future events, title insurance for homebuyers covers purchasers with past errors, such as fraud, faulty transactions, unpaid tax at the time of receipt of cover, and wrongly produced or executed documents. It can also cover legal defense costs, out-of-court settlements with the defendant or court decisions. The policy is adopted in order to raise the compensation limit if the value of the property appreciates. Title insurance also provides legal rights to the customer to meet developer obligations.
Do You Need Title Insurance When Buying a Home?
With title insurance, you will be the legal owner and will acquire full rights for possession and use of the property. In case one doesn’t acquire the title of a property, the investor can lose some or even all of the investment. Title insurance is a policy if you purchase property, which protects you from hidden risks that may lead to a property lawsuit. Title insurance is a much-needed home buyer’s safety mechanism in a country where many properties around cities lack clear titles of legal land ownership recognition. Also, inaccurate, incorrect, and old records generate routine disputes over land ownership. Often people who have bought and stayed in the apartments for a long time have unexpectedly been told that the property belongs to the government. In such cases, Title insurance would certainly help homeowners.
Buying a home is the biggest and most fulfilling investment you will ever make, so it is crucial to be vigilant when buying a property. One has to make sure to get title insurance for properties in order to protect against future disputes.
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By: Shailaja K