How long does title insurance remain in effect?

The correct answer is that title insurance remains in effect until the property is sold again. Title insurance is designed to protect the owner of the property and the lender from any issues related to the title, such as claims or liens that may arise from past events.

Once the property changes hands through a sale, the title insurance policy is typically transferred to the new owner, and a new title policy may be issued at the time of the new purchase. This is important because the new owner benefits from the existing coverage and any potential claims that could arise during their ownership. Title insurance does not automatically terminate upon sale but rather serves the interests of the current property owner until the ownership changes.

The other options, like the period until the mortgage is paid off or for a specific number of years, do not accurately reflect how title insurance operates. Unlike some types of insurance that have an expiration date, title insurance provides ongoing protection to the owner for as long as they hold an ownership interest in the property or until it is sold.