Chain of Title

Chain of title is an official record of ownership linking the original owner of property to the most recent owner. In real estate transactions, banks will usually ask for a chain of title from the buyer's attorney to ensure that the property is free from any previous legal claims to title. During the title search, the title company or legal professional will trace the title to the property from the current owner to the original owner and generate a report showing the chain of ownership. Once the title insurance company is satisfied with the report, it will issue title insurance for the property. The title insurance basically protects the buyer from potential defects in title to real property. The report is extremely important and a critical part of real estate transactions.