Making Land Titles in India Marketable : Using Title Insurance as a Viable Alternative to Conclusive Titling

Though land comprises a significant component of the total asset portfolio of Indian households, the quality of land titles is poor. So far, policies have been directed at improving government records, with the objective of being able to issue titles that are “conclusive” in nature, and an indemnity system run by the state that compensates those who suffer from errors or omissions of government agencies maintaining such records. This paper explores an alternative method of reaching the same objective—title insurance. Recently, the 2016 Real Estate Regulation Act has allowed state governments to require title insurance for real estate projects. There is, however, no title insurance available in the Indian market yet. This paper examines the nature of title insurance to propose mechanisms by which title insurance can be introduced in India and highlights important regulation considerations to help introduce title insurance market in India successfully