MahaRERA set to make land title insurance mandatory
Gautam Chatterjee, the chairman of the Maharashtra Real Estate Regulatory Authority (MahaRERA), is all set make title insurance mandatory for registered developers. This comes after insurance companies expressing interest in providing title insurance for the real estate projects.
Though the RERA had made land title insurance mandatory for developers, the state unit was not able to implement the clause right away as there was no insurance player in the market providing such a cover. With that changing, Chatterjee has sought a detailed proposal and will soon announce an implementation date.
A title insurance provides security to new buyers against any loss from defects in the property title. Currently, a lawyer issues a title insurance letter. However, there is no accountability. “This will change once companies like the New India Assurance start providing title insurance,” the chairman said on the sidelines of a workshop held by the Institute and Settlement Commissonerate at the National Insurance Academy (NIA).