chal­lenges

Realty Plus - - Property Affairs -

Only be­cause de­vel­op­ers have taken ti­tle in­surance does not mean that they will be re­im­bursed the in­sured amount. The pol­icy will al­ways be sub­ject to terms and con­di­tions and if the de­vel­oper was aware of any de­fect in the ti­tle which was pointed out dur­ing the le­gal dili­gence and if the de­vel­oper de­cided not to have them ad­dressed suit­ably in­clud­ing rec­ti­fi­ca­tion as re­quired by law, the In­surance com­pany will be well within its right to refuse to pay the in­surance cov­er­age.

On the other hand, the ti­tle in­surance will in­crease the cost of project as the In­surance com­pany will have to carry out due dili­gence and the his­tory of lit­i­ga­tion sur­round­ing de­fec­tive ti­tle in the coun­try will cer­tainly be one of the fac­tors while cal­cu­lat­ing the pre­mium. The rea­son for In­surance com­pa­nies not be­ing in a rush to pro­vide in­surance cover is the chal­lenges over how much li­a­bil­ity they will be sad­dled with com­pared to the pre­mium earned by them.

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