MahaRERA Chief Gautam Chatterjee 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.

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 on Saturday at the National Insurance Academy (NIA).

“This will be another layer of security. A couple of insurance firms have expressed interest in the segment,” said Chatterjee. He said while a title insurance must be cost-effective, it should also properly cover all insurance risks. “The government must help with the documents and ensure that land title records are complete. The proposed land title bill can play a role,” he said.

S Chockalingam, the settlement commissioner, too endorsed the bill. A member of Niti Aayog’s land titling committee, Chockalingam said the title bill was the future and an integrated land title system would help ensure a complete title.

Meanwhile, Lalit Kharbanda, chief manager of The New India Assurance, said his company’s product was ready and it was up to the MahaRERA to announce the date for the developers to insure their projects.