CHAIN OF TITLE: Real Estate Definition

CHAIN OF TITLE: Real Estate Definition
CHAIN OF TITLE: Real Estate Definition

Chain of title applies to the entire history of property ownership and must always represent continuous, uninterrupted possession.  Other documents, such as title or title, can be used to prove current ownership, but the chain of title is crucial if your title is ever in doubt.

What Is Chain Of Title?

The property chain is a time schedule of real estate ownership.  Ownership of property is transferred when it is sold, and these transfers form a chain.  When a buyer accepts a property purchase contract, the property firm has several responsibilities, including researching the property chain.

Where to locate a property’s chain of title 

Any property chain can be located at the local county registrar’s office, and there’s no reason you can’t research it yourself to find it.  All information is available to the general public. 

Remember that government regulations governing the transfer of real estate are different; thus, the chain of the property rights process in one jurisdiction may differ from the process in another

Chain Of Title Vs Deed In Real Estate

From the point of view of real estate, a transaction is a written document that transfers ownership (ownership) or interest in property to another person.  Ownership is a set of rights to an object of property in which a party may have both legal and equitable rights. 

“Bundle of rights” is a term for a set of legal privileges that are usually granted to a real estate buyer and cover everything they can and cannot do with the property as its owner.

 In terms of the title chain, all of these documents work together.  For example, a mistake in recording a transaction can lead to huge problems with the property chain, because in most cases a person who has a properly executed transaction outweighs one who claims property without it.

The title search chain is a valuable tool for identifying former property owners, as well as helping to determine whether past use of property is causing negative signs of environmental concern.

Finding titles often requires the researcher to review a time when real estate ownership laws and practices were significantly different than they are today.

How Does Chain Of Title Search Work?

The title search chain may require extracting all available real estate data for 70 years or more.  In addition, the report may need to verify documents, easements, mineral rights and restrictions on use (for example, some of them). 

While most district courts collect and organize documents following standard industry guidelines that have been developed over time, each county office has its own characteristics.

These steps will help you get through the basic chain of ownership of simple property.  Many properties are subject to complex changes in legal description and may be held in fiduciary ownership and interest for years with minimal registration.

ALSO READ: LINE OF CREDIT VS CREDIT CARD: Definition And Differences Explained

How To Search For Chain Of Title

 Find Tax Records

 Tax records offer a more detailed overview of real estate information, confirming that all property taxes are relevant.  Tax history also gives accurate estimates of property values ​​over time, giving you a better idea of ​​the current fair market value of the property.  Your county tax office will have tax lien records that you can check to make sure there are no encumbrances to buy your property.

 Maps can often be your best friend when conducting historical research.  One of the great benefits of visiting the recorder’s office in person is that you have all the recorded cards at hand.  Before leaving your computer terminals, be sure to document the card number or plate and the page where you can find records of your property. 

These numbers are usually contained in the first paragraph of the legal description, commonly referred to as Appendix A. You will need these links to find out how the property was identified before the legal description was changed.

Consult A Real Estate Lawyer

Creating your own title search is a complex process that is best done with professional help.  After you have documented the necessary information, consult with a real estate lawyer about the further use of your data.  They can advise you on resolving any encumbrances or answer questions about complex legal documents.

Search With Your Computer

Start by running the current owner’s name on public computers, and you’ll get a list of all the documents that were filed under that name within the index.  If you’re lucky – and it’s always worth asking – the county tax inspector or district appraiser can store historical tax information sorted by parcel number or tax account. 

A search of these identification numbers can reveal in which years the property passed from hand to hand, as well as which tax account numbers could be in development, which helps to find the right documents faster.

 Review The Title Company

The law firm works with real estate agents to verify property ownership.  Thus, their company files may contain information about current property owners along with the titles of previous owners.  The records of an individual rights firm are likely to be more comprehensive than a self-report.

List Of Chain of Title Documents

Involuntary liens

Include tax lien, utility lien, lis pendens, Homeowners’ lien and other documents proving that the owner has not paid the necessary fees, charges, account balances or charges to the district or association manager.  Pledge mechanics – another example of forced pledge. 

This happens when a contractor or subcontractor is not paid for work or materials for home improvement projects.  Compulsory pledges remain attached to the property and create a defect in property rights until it is repaid.

Transfer documents 

Transfer documents (deeds) confirm the transfer of ownership.  The deed transfers the property from the seller or donor to the buyer or recipient.  The act also contains a detailed description of the property.

Financial documents

Financial documents (mortgages and trust documents) are voluntary collateral, as the lender enters into a loan agreement with the lender to purchase property.  Until the debt is repaid, usually in 15 or 30 years, the lender has ownership of the property.  After paying the mortgage, the former lender owns the property “free of charge and without hindrance.”

Covenants and restrictions 

Covenants and restrictions are documents that restrict the use of property.  Such restrictions may include restrictions on the types of improvements made to property, use of property and use of property.  Older homes may have agreements that prohibit the sale of property to people of a certain race or religious origin, but these agreements are no longer enforceable.


Easements, also known as travel rights, are documents that affect usage rights.  There are different types of easements, including utility easements – private easements – easement as needed –


Chain Of Title Vs Abstract Of Title

The abstract of the title is basically a summary of the history of the property.  It is much smaller than the actual full version of the history of ownership of a property.  All important information about a specific property will be included in the title annotation.

While the title chain is similar to a title annotation, except that it is a complete version of information about a particular property.  The property chain has been tracking all individual property owners for many years.  This is a much more detailed set of information compared to the title annotation.

Chain Of Title FAQs

How Does A Chain Of Title Work?

Like an abstract, a chain of title acts as a history of property ownership for many years, such as who previously owned it and when.  The chain can also be called a title search or a title report.  Unlike a statement of title, it is not a physical document, but a general history of the property and how its right is transferred from owner to owner.

How Do Abstract Of Titles Work?

Abstract of title serves two key purposes: preparation and prevention.  In terms of training, a property statement is used by lawyers and other professionals as training to make sure that all necessary property rights (property history) are in order. 

Typically, these documents are used to confirm the ownership of one party to the property before signing the agreement on the transfer of ownership.  In essence, the abstract of the title prepares the contract for actual and legal performance. 

Where Is An Abstract Of Title Needed?

Abstracts of titles also have a preventive role.  Lawyers use these types of documents to reassure their clients that the documents for their real estate transactions are in order.  By verifying the sellers’ ownership of the property, the lawyer assures his client that there are no third parties who could challenge the client’s claims to the above property.

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Abstracts of titles also have a preventive role.  Lawyers use these types of documents to reassure their clients that the documents for their real estate transactions are in order.  By verifying the sellers' ownership of the property, the lawyer assures his client that there are no third parties who could challenge the client's claims to the above property.

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The title chain is absolutely useful and indispensable in the real estate sector.  When transactions want to take place in this sector, the buyer is provided with all the information about the ownership chain of his parent company. 

This is to prevent fraud and property fraud.  In this case, the parent company collects all transfers of the asset in the statement of ownership.  They also incur any financial losses due to errors in the report if the buyer is covered by an insurance contract of ownership. 

The Torrens property rights system is one of many registration systems designed to track property rights and reports on ownership of various segments of real estate.

REFERENCES – Chain of Title in Real Estate: The Complete Guide – Conducting Chain Of Title Search

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