What is a chain of title?

A chain of title refers to the historical record of ownership for a specific parcel of land. This includes all transfers of title from one owner to the next, documenting the sequence of ownership through sales, inheritances, or any other means of title transfer. Understanding the chain of title is crucial in real estate transactions because it verifies that the seller has the legal right to transfer ownership and helps establish a clear title, free from disputes, claims, or unresolved liens. A well-maintained chain of title can also provide essential insights into the property's history, which can affect its marketability and value. This concept is foundational in real estate and essential for ensuring a smooth transaction process.