Reports from the last quarter of 2019 suggest around 22 lakh homes in Maharashtra being completed under RERA initiative by the government. The report also suggests 1.1 crore citizens being accommodated in these units.
Furthermore, more than 22,600 projects have been registered under this initiative, with only around 4,000 of them having been completed till date. Understandably, while on one hand, this initiative has had its success, it has faced its share of difficulties.
Consequently, mandatory land title insurance is one of the major steps taken by MahaRERA to battle the difficulties faced. To ensure that every property developed under RERA is secure against indemnity charges, every builder is mandated to purchase land title insurance for their property. These insurance policies cover a property developer and its subsequent owners from any issue related to the title of the concerned property.
Essentially securing the ownership of a property, land title insurance policy covers any litigation charges that might come up in the future. As a mandatory directive from the RERA Maharashtra authorities, it is vital to understand the impact of making this policy compulsory for every builder.
Discussed beneath in details, this compulsory policy does not just help builders but also benefits first time home buyers with RERA in action –
-Safety against litigation charges
Real estate, though one of the safest investment options are liable to litigation charges. From issues like ambiguity in land title to ownership issues or unpaid property taxes, there are several types of litigation charges which an owner of a property might be liable to clear.
In such circumstances, mandatory land title insurance under MahaRERA helps the owners by covering all litigation charges. These insurance policies generally also cover legal and related expenses which arise due to any litigation related issue.
-Settles ownership disputes
Among all one needs to know about MahaRERA in Maharashtra, a vital fact is that of first-time homeowners being eligible for this initiative. Consequently, safeguarding the ownership of buyers was deemed vital by RERA authorities in Maharashtra.
Making land title insurance policy mandatory for builders under this policy was a crucial step towards the same end since these policies help in settling ownership related disputes. Furthermore, few financial institutions also help in case there is a need for out of court settlement.
Regulations making land title insurance mandatory for builders of Maharashtra who have opted for RERA registration has directly contributed to the credibility of the housing sector in question. It is one of the ways how RERA is altering the real estate market.
With the RERA Act in place, lenders are also offering more preference to homebuyers opting for registered properties. Several HFCs are offering home loans with quick approval.
They also provide pre-approved offers, which make availing loans hassle-free and fast. Individuals can easily check the pre-approved offer by providing their name and contact details.
Those who are availing a housing loan to fund their purchase should note a few other things too. It is vital to check different options and compare the total repayment amount before finalising. This can be done easily using a home loan EMI calculator.
The premium for the land title insurance policy has to be paid by the developers until the project construction is complete. After construction, all the documents and power of attorney is transferred to the Association of Apartment Owners. This policy has to be renewed every year.