Karantaka to introduce title insurance to safeguard property

Bangalore, Mar 16 (UNI) Curbing the menace of land encroachment in Bangalore, Karnataka today announced introduction of title deeds insurance besides establishment of Bangalore Developers, Builders and House Owners Repository.

Deputy Chief Minister B S Yediyurappa announcing the introduction of the new scheme in the budget for 2007-08 in the State assembly today said that all properties which were backed by title insurance would enjoy a 0.5 per cent concession on payment of stamp duty at the time of registration of property., He said encroachment of government lands by builders and developers had become a menace, especially in Bangalore. ''Gullible public suffer on account of loss of title and even law abiding land and apartment developers are finding it difficult to convince prospective buyers about the correctness of title''. The insurance policy would be issued by an insurance company recognised by the Insurance Regulatory and Development Authority.

In the absence of complete and legally validated information investment decisions were often postponed and large sums were spent on obtaining confirmation of legality of documents. To overcome these obstacles the government had decided to introduce the two new measures, he added.

He said The repository to be established on a public-private partnership model, would collate all declared information by a particular developer, builder or house owner and pass on the same to the prospective purchaser.

These measures would eventually smoothen the process of land based transaction, he added.

He also announced setting up of a Data Storage and Disaster Management Centre in Bangalore and Dharwad for storage and preservation of permanent records.

UNI