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Role of Title Insurance in Safeguarding Real Estate Transactions

Submitted by admin on August 19th, 2025

When purchasing a property in India it is not entirely about such steps as choosing the right location and the most appropriate price to offer. The risk of title disputes is one of the biggest challenges investors and homebuyers have to put up with. Uncertainties associated with lousy title, forgery and acquisition of numerous titles to the same piece of property, among other problems have frustrated buyers over the decades. Here is when title insurance enters.

What is a Title Insurance?

Title insurance is a form of indemnity insurance that helps protect the property owners and those utilizing secured finance against losses caused by an error in the title to the property. In mere words, it facilitates in carrying out a clear legal ownership of the property you purchase without any unknown exposures.

Typical Title Perils India

The real estate market in India has been beset by the problems that include:

• Goods that are sold by an individual who is not rightful owner.
• Duplication of sale of one property to more than one buyer.
• Legal tussles on inheritances.
• Counterfeit papers or forged registration papers.

These contests may take many years to incur in the court room, bringing in colossal financial and emotional pressure.

The Benefits of Title Insurance

1. Insures Ownership Defects-Provides protection to a buyer against financial loss should the ownership of the seller later be questioned.
2. Protection Against Fraud: In the event of forged documents, then the insurance carrier would cover the losses.
3. Benefits Developers – Through RERA (Real Estate Regulation and Development Act, 2016), developers will be mandated to take title insurance purchase so that the projects being sold by developers do not have legal issues.
4. Boosts Buyer Confidence – Title insurance makes real estate that much more reliable, easing along the process of sale and purchase.

In RERA Title Insurance

Titles insurance in India in RERA was a significant action that could help secure the homebuyers.

It not only holds developers accountable but also reassures buyers that their hard-earned money is safe. For investors, especially NRIs who cannot physically verify every document, title insurance provides an additional layer of legal security.

Why Investors Should Care

For real estate investors, especially those purchasing multiple properties, title insurance minimizes legal risks. A disputed title can make it impossible to resell or lease out the property, leading to losses. Title insurance ensures smooth ownership transfer and protects long-term value.

Conclusion

Title insurance is still a relatively new concept in India, but its importance is undeniable. It brings transparency, reduces fraud, and secures transactions in a market where legal disputes are common. For anyone investing in Indian real estate, especially in large projects or high-value properties, title insurance is not just a safeguard—it is a must-have tool for peace of mind and financial protection.