Chain Of Title

DEFINITION of 'Chain Of Title'

The official record of ownership of a property or asset. The chain of ownership gets its name from its sequential nature; a chain of title traces historical title transfers from the current owner back to the original owner. Due to their critical importance in establishing ownership of a property or asset, rigorous and accurate title records are generally maintained by a centralized registry or system.

BREAKING DOWN '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.

RELATED TERMS
  1. Quiet Title

    A lawsuit filed to establish ownership of real estate when ownership ...
  2. Clear Title

    Also known as "clean title," "just title," "good title" and "free ...
  3. Absolute Title

    Title to a property that is free of any encumbrances or deficiencies. ...
  4. Perfect Title

    A title deed for real estate that does not have any liens attached ...
  5. Cloud On Title

    Any document, claim, unreleased lien or encumbrance that might ...
  6. Bad Title

    A title that does not grant ownership to its holder due to unsatisfied ...
Related Articles
  1. Professionals

    Property Titling And Transfer

    Property Titling And Transfer
  2. Home & Auto

    Tip No.5: Make Sure You Have Clear Title

    Liens and encumbrances on a property can leave you stuck with the past owner's liabilities.
  3. Retirement

    Holding Titles On Real Property

    Find out how best to claim and convey ownership on your assets.
  4. Credit & Loans

    Getting A Car Title Loan

    This loan-of-last-resort uses your car as collateral and features very high interest rates and fees. Be extremely wary of even considering one.
  5. Home & Auto

    Encumbrances And Nonpossessory Interests In Real Property

    Learn about nonpossessory interests and the various forms of encumbrances.
  6. Credit & Loans

    Car Title Loan Limits

    You can usually get 25% to 50% of a car's value - but could pay more in interest than you borrowed if the loan rolls over a lot before it's paid off.
  7. Home & Auto

    What's a Special Warranty Deed?

    A special warranty deed is a deed in which the seller guarantees the title only against defects that occurred during his ownership of the property.
  8. Credit & Loans

    Are Car Title Loans Ever a Good Idea?

    Most people knowledgeable about finance consider title loans predatory. What would constitute a good-quality short-term loan? Here's one idea.
  9. Credit & Loans

    8 Top Alternatives to Car Title Loans

    Before you sign up for a car title loan, investigate these 8 alternate strategies.
  10. Home & Auto

    Intro To Insurance: Other Insurance Policies

    By Cathy ParetoThe list of insurance products is not limited to health, life, or property protection; in fact, there are many other risk management solutions available in other forms of insurance ...
RELATED FAQS
  1. What real estate documents need to be recorded?

    Learn how recording documents on real estate transactions, such as deeds, mortgages, easements and taxes, help ensure proper ... Read Answer >>
  2. What do real estate attorneys do?

    Understand the role of a real estate attorney to help you decide if you would benefit from the expertise of this type of ... Read Answer >>
  3. What is the difference between supply chain management and value chain management ...

    Discover what the principal differences are between utilizing a supply chain management system and a value chain management ... Read Answer >>
  4. What type of work experience can count towards the work experience required in order ...

    CFA Institute provides a list of job titles that qualify for the work experience an individual must gain to be awarded with ... Read Answer >>
  5. What is the distinction between Free on Board (FOB) shipping point and destination?

    Find out more about free on board shipping point and free on board destination and the difference between these international ... Read Answer >>
  6. What is the difference between a value chain and a supply chain?

    Understand the difference between a value chain and a supply chain. Learn why a company would want to maximize the value ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center