What does the term "chain of title" refer to?

The term "chain of title" refers to the sequence of historical ownership transfers of a property. It is an essential concept in real estate, as it provides a record that tracks the ownership of the property from its inception to the present holder. This records the names of all the previous owners and the transfers of the title, ensuring that the current owner has a clear title free from disputes or claims by others. Understanding the chain of title is crucial for verifying ownership and ensuring that there are no encumbrances or liens that could affect the property’s value or the owner's rights. Thus, knowing the complete history of ownership helps in establishing legal title and can be essential when it comes to resolving any title issues or claims in the future.