Investopedia explains 'Chain Of Title'
While the term is most commonly used in the real estate industry, chains of title are also found in the field of intellectual property such as film and music, as well as for intangible property such as farming or timber rights.
In a real estate transaction, the chain of title is researched on behalf of the buyer by a title company, which summarizes all title transfers and encumbrances in a title report. Title insurance is used by buyers to protect against financial loss ensuing from errors in the title report.
|
