What Is Chain Of Title And Why Is It Important?

Mar 7, 2024

4-minute read

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The front door of a suburban home with flowers, showcasing curb appeal and home aesthetics.

Every property has a unique history marked by potentially multiple owners and real estate transactions that affect the property’s title. This history is detailed in the chain of title, which is essentially a record of a property’s ownership.

Understanding chain of title helps buyers, sellers and real estate professionals ensure transparency, verify ownership rights and mitigate the potential risks associated with disputed or unclear property ownership.

What Is Chain Of Title In Real Estate?

Chain of title is often described as the sequence of historical transfers of title to a property from the current owner all the way back to the original owner. This also applies to land without a home on it. To put it simply, chain of title is the story of a home’s ownership. It covers who built and first owned the house, who bought it next and who owned it each time it was sold – all the way to the present day.

A chain of title should always reflect continuous, unbroken ownership. A property deed proves current ownership of real property, but the chain of title becomes essential if your right to own the property is ever called into question.

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