Mumbai-based developer Raheja Universal, on August 22, 2018, said that it has adopted title insurance policy for its projects, from HDFC Ergo, as per the guidelines of the Real Estate (Regulation and Development) Act 2016 (RERA), becoming the first realty player in the country to do so. “This is a game-changer initiative by the state and MahaRERA, as it will provide the much-needed protection and build buyers’ confidence. The policy will stabilise accountability and transaction process,” Raheja Universal’s managing director Ashish Raheja, said in a statement.
Title insurance refers to insurance for all real estate projects registered with the regulatory body, mandated under the RERA. “The policies will provide security to property developers and new age buyers, against defects in the title of the property. This regulation will bring a lot of confidence among buyers, bankers and financiers. The rising policy assurance in the market, will also improve home financing options, while ensuring timely delivery of projects,” he added. The policy will also help protect buyers against loss due to problems in land title defects, discovered after purchase.
HDFC Ergo is the first private insurer to launch the product. Commenting on the development, HDFC Ergo General Insurance executive director and chief distribution officer Anuj Tyagi said, “Title insurance is an innovative product, which covers the customers from risks related to the title of the land on which the property rests. It is a must-have for developers, as an effective risk transfer mechanism.”