Builders wary of title insurance fearing cost escalation
Even as the Real Estate (Regulation and Development) Act makes it mandatory for developers to take title insurance, builders are hesitant to adopt it, saying it may further add to financial burden, say experts.
A title insurance is a form of indemnity insurance that protects investment in real estate and provides coverage against financial loss arising from title defects and other irregularities pertaining to property acquisition.
Section 16 of the Rera Act necessitates developers to adopt title insurance, however, it will be mandatory after the regulator of each state notifies it.
Currently not a single state regulator has mandated it, while MahaRera has indicated it would soon issue a notification in this regard.