When you buy a property, you usually check the sale deed, encumbrance certificate, and do legal due diligence. But even careful checks can miss hidden problems:
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Unknown heirs or missing successors claiming ownership
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Forged or fraudulent documents in the past title chain
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Undisclosed mortgages, liens, or unpaid taxes
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Errors in registration or boundary disputes
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Mistakes in government records or missing entries
These “title defects” may surface years later, dragging you into legal battles, loss of ownership, or heavy financial liabilities.
In India, land and property records are often fragmented, manual, and sometimes inaccurate. Even with RERA and regulations, title problems continue to persist.
Legal diligence reduces risk, but cannot fully eliminate it — especially for properties with long chains of ownership or resale houses.
Consequences of Having No Title Protection
Imagine these scenarios:
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You bought a flat. Two years later, a distant relative of a previous owner claims a share, citing missing registration.
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A past mortgage, never released, surfaces, and the lender demands repayment.
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A registrar error results in someone else’s name being recorded, and you have to fight to restore your name.
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You end up spending huge legal fees, possibly losing part or all of what you paid.
Without protection, the burden falls entirely on the buyer. Legal recourse might be slow, expensive, or even unsuccessful.
What Title Insurance Is & Why You Should Have It
Definition & Concept
Title insurance is a form of indemnity insurance that protects property buyers (and lenders) from losses caused by defects in the legal “title” of the property. It differs from other insurances because it covers past title issues, not future incidents.
Before a policy is issued, the insurer conducts a thorough title search (past records, ownership chain, encumbrances). If the title is deemed good (or cleansed), the policy is issued. If in future a covered defect appears, the insurer will indemnify (compensate) or defend you legally.
Types of Title Insurance
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Owner’s Title Insurance — protects the buyer/owner against defects in title.
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Lender’s Title Insurance — protects the lending institution’s interest (mortgage) in case of title issues.
What It Covers
Typical coverage includes:
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Forgery, fraud, impersonation
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Undisclosed or missing heirs
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Errors in public records
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Unreleased mortgages or liens
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Improperly recorded deeds
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Legal defense costs for claims of title defects
Exclusions / What It Does Not Cover
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Known defects disclosed before the purchase
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Zoning or land use regulation changes (unless included)
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Environmental hazards or structural defects
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Governmental ordinances or eminent domain claims
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Claims arising after the policy issuance not covered or excluded
Cost
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Typically a one-time premium, not annual.
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Premiums are often a small fraction of property value, depending on risk assessment, property type, location.
When & How You Should Use It
Which Properties Should Consider Title Insurance
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Resale homes with long ownership history
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Properties with many past transactions / transfers
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Plots / older buildings in older urban zones
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High-value or luxury properties
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Projects in cities with less digitised land records
How to Get Title Insurance
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Choose an insurer that offers title insurance (some general insurers in India are beginning to offer it).
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Conduct title search & due diligence — insurer will assess risk.
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Pay the premium and get the policy before closing / registering.
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Keep the policy active (owner’s policy typically remains valid during ownership).
Due Diligence Is Still Essential
Title insurance is not a substitute for legal checks; it complements legal diligence. The insurer’s underwriting will still require checks.
When to Claim
If a covered title defect arises, report it to the insurer, submit requisite documents, and allow them to take over legal defense or indemnify.
Takeaway
Buying a property in India involves more than just paperwork and payment — it’s about securing your ownership for life. While due diligence and legal checks are vital, they cannot always uncover every hidden risk in a property’s title history. That’s where title insurance becomes your safety net.
It ensures that your investment stays protected even if unexpected legal issues arise later — whether from old disputes, forged documents, or undisclosed heirs. For a one-time premium, you gain long-term peace of mind and legal protection that can save you from years of stress and financial loss.
As India’s real estate market matures, title insurance is no longer optional — it’s essential. It not only safeguards your rights but also strengthens trust between buyers, lenders, and developers, paving the way for a more transparent and secure property ecosystem.
If you’re buying a home in 2025 or beyond — especially a resale or high-value property — make title insurance part of your checklist. It’s the shield your dream home deserves.
Visit Us: navimumbaihouses.com or Call on @ 8433959100
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