What does the term “chain of title” mean?

The term "chain of title" refers to the history of ownership of a property as recorded in public records. This concept is crucial in real estate transactions because it outlines the sequence of past owners, providing a clear and legal lineage of ownership rights. By examining this chain, potential buyers can determine whether the title is clear, meaning there are no legal claims or disputes against the property. This historical record is essential for establishing ownership and can reveal any issues such as liens or easements that could affect the buyer’s rights. Understanding the chain of title helps ensure that buyers are purchasing property without unexpected legal encumbrances, making it a fundamental aspect of property transactions and title searches.