How long must the Notice of Purchaser's Rights to Purchase an Owner's Policy be retained in the underwriting file?

The correct duration for retaining the Notice of Purchaser's Rights to Purchase an Owner's Policy in the underwriting file is 15 years. This requirement is part of compliance with regulatory standards that ensure essential documentation is preserved for an adequate period, allowing for accountability and transparency in the title insurance industry.

Retention for 15 years provides sufficient time for any potential claims or disputes related to the owner's policy to be addressed. This duration aligns with industry best practices, ensuring that documents are available for review if needed, whether for audits, legal matters, or customer inquiries.

Retention periods that are too short could compromise the ability to investigate claims thoroughly, while excessively long retention could lead to resource inefficiencies. Thus, maintaining the Notice for 15 years strikes an effective balance, ensuring that title agents are equipped to respond to any issues that might arise long after a transaction has occurred.