The Hindu : Karnataka / Bangalore News : ‘Title insurance’ for property registration soon

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Friday, Mar 28, 2008
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Karnataka

Karnataka - Bangalore

‘Title insurance’ for property registration soon

Special Correspondent

BANGALORE: The Department of Stamps and Registration has launched a novel “title insurance” service for the benefit of purchasers of new properties.

Under the scheme, the department will take on the responsibility of verifying the given land documents, enabling the buyer to purchase a property with the right documents. The service of the department will obviously be for a small price. Hitherto, land buyers had to seek the services of lawyers and other professionals to verify documents.

Speaking at an interactive meeting with the members of the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) here on Thursday, secretary of the department H. Shashidhar said this service was first launched by Karnataka in the country.

The department was awaiting the nod of the Insurance Regulatory and Development Authority (IRDA) in favour of this service, he added.

The service had the distinct advantage for the land buyers as the insurance companies would go into the authenticity and legal validity of the title before clearing the title.

Mr. Shashidhar said the series of reforms taken up by the department was aimed at eliminating corruption and inefficiency.

In the process of reforms, the department had increased the number of the offices of sub-registrars from 12 to 42 offices in Bangalore which had brought accountability as well as decentralised the functions of registrations, he added.

In addition, the Bangalore urban sub-registrar’s office had been divided into five offices each in Jayanagar, Basavanagudi, Shivajinagar, Gandhinagar and Rajajinagar. This had spurred further decentralisation of record keeping in this office.

Mr. Shashidhar said land sales in the city had come down by 25 per cent following the speculators and mass buyers keeping away from the market. Only the end users were buying property. Mr. Shashidar said 10.15 lakh properties were registered in 2005-06, 14.13 lakh properties in 2006-07 and 11.94 lakh properties in 2007-08.

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Karnataka