Title insurance for homebuyers: Here's all you need to know
'Title' is a legal term used to identify the rightful owner of the property. IRDAI has asked every landlord to provide title insurance.
Homebuyers or those planning to buy a property often hear the word ‘title’. ‘Title’ is a legal term. It is used to identify the rightful owner of a property. Often the biggest concern among home buyers is the legality of the property. The Insurance Regulatory and Development Authority of India (IRDAI) has asked general insurance companies to launch a new title insurance product for each homeowner.
Recently, IRDAI has given instructions to bring title insurance products to compensate for the loss due to the wrong title. Earlier, a working group was constituted for this, on the basis of whose recommendations these instructions have been given to the insurance companies.
According to the information, the concept of title insurance is in the initial stage. Experts say that after these new instructions from IRDAI, it can get a boost. According to them, due to the discrepancies in the title of the real property, often the owner has to suffer a lot at the financial level. This can be an exercise to save these losses. If we look at the current situation, title insurance is currently available in the country only for promoters or developers. Whereas after the new instructions, individual buyers will also come under its ambit.