Final answer:
Title insurance cannot typically be transferred to future owners of the property. An owner's policy lasts as long as the owner or their heirs have an interest in the property, but new owners must purchase their own policy. Special cases may apply, but generally, the insurance is not transferable.
Step-by-step explanation:
The statement is false: once obtained, title insurance cannot typically be transferred to future owners of the property. Title insurance is a form of indemnity insurance that protects an owner or lender against financial loss from defects in title to real property, liens, or other matters legally attached to the property that were not discovered at the time of the sale. There are generally two types of title insurance: owner's policies and lender's policies.
For the most part, an owner's title insurance policy is issued in the name of the property owner and lasts as long as they or their heirs have an interest in the property. It does not automatically transfer to new owners when the property is sold. Instead, the new owners would need to purchase their own policy. However, a lender's policy does typically provide coverage to the lender for the duration of the loan, irrespective of who owns the property.
In special cases, like when a property is inherited or gifted (not sold), there might be a continuation of coverage under the original owner’s policy, but this is not a transfer of the policy itself. It is crucial for specific questions regarding title policies and their transferability to be directed to a legal professional or a title insurance company.