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What Is Chain of Title and Why Is It Important?

Monday, November 21, 2022

Let's imagine a scenario:

You've grown up in your childhood home for your entire life. Eventually, it becomes your house. You have your own family and raise your kids there too.

It's a family legacy.

But one day, a man shows up on your doorstep with a suitcase and claims that this is his house and he expects you to leave.

Sound scary and absurd? Perhaps, but this is where the chain of title comes in handy.

Chain of title documents protects your assets and proves your ownership. Read on to learn more about it and why it should be important to you!

What is Chain of Title?

Think of the chain of title as a record of your property. Unless you built your home from scratch, it probably has a long history of owners before you came along.

The chain of title documents who built the home and its subsequent owners from there. Every time a home is bought and sold, the chain of title encompasses that information.

What is It Used For?

If the rights to your home ever are called into question, the chain of title becomes crucial to prove that you actually own the house.

Partnered with the deed and property title, the chain of title is a legal document that works as proof that the owner of the home has full rights to the property.

If there is an error in that deed or chain of title, you and your property are at risk. Therefore, ensuring that your documentation is correct is key.

Where Do I Find It?

Title companies are companies that work to research a home when it is being bought or sold. This is called a title search.

The company will verify who holds the title to the home and will identify if there are any liens on it, as well as what types of liens. The title company verifies how much of the land is included in the ownership of the home as well.

Working with one of these companies that look into the history of a property is how you can confirm the chain of title.

When Do I Need It?

The chain of title becomes relevant whenever you change ownership of the home or if the ownership is in question.

You may need to look into the chain of title if you are buying a home, selling a home, inheriting a home, or gifting a home.

Gain Peace of Mind with Chain of Title

Buying or selling a home is a huge monetary responsibility that can come with a lot of stress. To ensure that you are doing things by the book, work with professionals and lean on their expertise.

Our title insurance services can help both buyers and sellers ensure that the process of changing property ownership is seamless and accurate.

Contact us today to discuss how we can serve your needs regarding title insurance, title searches, or chain of title concerns. 

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