• The chain of title is a record tracking every transfer of ownership and legal claim to a property, from first deed to present.
• Missing deeds, invalid transfers, or unresolved liens break the chain and can halt property sales.
• Title searches go back 40-60 years, examining deeds, court orders, and tax records.
• Foreclosures, commercial leases, and multi-property deals require extra title scrutiny when investing in them.
• It’s imperative that owners diligently record important updates regarding ownership, especially if it concerns transfer.

A chain of title serves as a property’s ownership history, tracking every transaction that affects property rights. This record begins with the original grant deed and includes each subsequent transfer, mortgage, lien, or other document that impacts ownership rights.

A complete chain of title answers three critical questions about a property:

• Who has owned the property?
• When did ownership transfer?
• What claims or restrictions affect the property?

Title companies and real estate attorneys examine these records during property transactions to ensure sellers have the legal right to transfer ownership. They perform what’s called a “title search” that examines public records at county courthouses or digital databases to build a complete ownership timeline.

The video below explains how to order a title search for a property:

A chain of title is made up of documents that show who has owned a property and what claims exist against it. The most important documents are deeds, which show when property changes hands from one owner to another.

However, not all deeds offer the same protection. A warranty deed is the safest kind because it guarantees the new owner is getting clear ownership rights. On the other hand, a quitclaim deed is riskier because it only transfers whatever rights the current owner has without any guarantees.

Liens and Court Orders

Other documents in the chain show liens on the property. Liens are legal claims or rights against a property that serve as security for a debt or obligation. They appear in the chain of title and can significantly impact property ownership and transactions.

Some examples of liens that show on a chain of title include:

• A bank’s mortgage when they lend money to buy the property.
• The government’s claim for unpaid taxes.
• A contractor’s claim for unpaid work (mechanic’s liens).
• A court’s claim from a lawsuit judgment.

Courts also create important documents that go in the chain of title. When couples divorce, the court decides who gets the property. If someone goes bankrupt, the court may order the property sold. Foreclosure documents show when a bank had to take property back.

Sometimes courts need to decide who really owns a property, and when someone dies, the court helps pass their property to their heirs.

RELATED: The 4 Major Components of a Will Explained

A chain of title can break in a few main ways.

1. Missing Records

First, important documents might be missing from the record. This happens when owners fail to record deeds, when courthouse fires destroy records, or when important papers get lost. Sometimes property descriptions are unclear, making it hard to know exactly which land the documents cover.

2. Invalid Documents

The second type of break happens when documents turn out to be invalid. For example, someone might forge a signature on a deed, or a person might try to sell property they don’t have the right to sell. Even if a deed looks correct, it could be void if it wasn’t signed or notarized properly. Selling property during bankruptcy can also cause problems because it might violate court orders.

3. Others

Additionally, other factors that can contribute to breaks in the chain of title include:

• Typographical errors in names or property descriptions.
• Unresolved estates or inheritance issues.
• Improperly handled foreclosures.
• Unreleased liens or mortgages.

Impact on Real Estate Transactions

When there’s a break in the chain of title, it affects everyone involved in trying to sell the property.

• For sellers: Sellers face the biggest problem, since they can’t sell their property until they fix the title issues. This often costs money and takes time. They might need to hire lawyers to solve the problem.
• For buyers: Like buyers, lenders also struggle with title problems. Banks usually won’t lend money for a property with title issues. If they do agree to lend, they charge more for title insurance to protect themselves. Many buyers decide it’s not worth the hassle and look for a different property instead.

When investors buy property, they must check its chain of title extra carefully. This is because investment properties often have more complicated backgrounds than regular homes. Some may have gone through foreclosure or had many different owners in a short time.

Foreclosure Properties

Properties bought from foreclosure sales need special attention. The bank must follow exact steps when foreclosing on a property. If they miss even one step, it could cause problems with the title later. Smart investors check all foreclosure paperwork to make sure everything was done right.

RELATED: The Full List of All Judicial and Non-Judicial Foreclosure States in the U.S.

Commercial Property Rights

When buying commercial buildings, investors should look closely at tenant agreements in the title history. Some tenants might have special rights, such as ROFR (right of first refusal), or the first chance to buy the building if it goes up for sale. These rights can limit what an investor can do with the property.

Buying Multiple Properties

Buying several properties at once makes title checking more complex. Each property needs its own complete title search. Investors should plan enough time to check each property’s history separately.

Business Ownership Changes

Sometimes properties are owned by companies instead of people. In these cases, the title history needs to show both:

• When the property changed hands
• When company ownership changed

These business changes can affect who really owns the property.

Development Issues

Investors planning to develop property should check the title for restrictions like:

• Rules about what can be built
• Protected land areas
• Mineral rights, or rights to minerals under the ground
• Easements, or other people’s rights to cross or even use the property
• Building limits from past owners

Planning Ahead

Smart investors create a checklist of title issues to look for based on their plans for the property. This helps them find major problems early, before spending too much money. It also helps them budget for title insurance and fixing any title problems they find.

When problems show up in a chain of title, there are specific ways to fix them. These fixes are called “curative actions”—steps that clear up (or “cure”) problems with the title.

You need the right documents and evidence to prove relationships and correct mistakes.

Common Legal Documents

The most common way to fix title problems is through new legal documents. A “correction deed” fixes mistakes in an earlier deed, like a misspelled name or wrong property description. If someone forgot to sign a deed properly, they can sign a new one to fix the error.

Sometimes, people even need to file documents stating that two differently spelled names refer to the same person (like “Bob Smith” and “Robert Smith”).

Quiet Title Actions

When ownership is unclear or disputed, lawyers often use a quiet title lawsuit. This legal action asks a court to decide who really owns the property. It’s especially useful when dealing with missing heirs, old claims, or confusing ownership histories. The court’s decision cleans up the title by declaring who the true owner is.

Using Affidavits

For missing documents, title professionals often use affidavits, which are sworn statements that explain what happened.

For example, if a property passed through inheritance but some paperwork is missing, family members might sign affidavits explaining the family history and who should have inherited the property.

The Curing Process

Sometimes fixing title problems requires multiple steps:

1. Track down previous owners for signatures.
2. Search for missing documents in other counties.
3. Get court orders to establish facts.
4. Record new documents to replace lost ones.
5. Update property descriptions with surveys.

Title insurance companies often help with these fixes because they want to reduce their risk of future claims. They have experts who know exactly what documents courts will accept to cure different types of title problems.

Most title issues stem from predictable sources, making prevention possible through careful attention to detail. Recording errors account for many problems like misspelled names, incorrect property descriptions, or missing signatures can create significant complications years later.

Proper review of documents before recording can prevent many of these issues. Owners may fail to record:

• Mortgage satisfactions
• Lien releases
• Easement terminations
• Boundary line agreements
• Name change documents

Unsurprisingly, family transfers create another common source of title problems. When property passes through inheritance or divorce, necessary documentation sometimes goes unrecorded. Parties may even feel formal procedures are unnecessary.

However, these informal transfers often create the most serious title problems. Even gifts and nominal-price transfers should follow proper procedures and documentation requirements. Death certificates, divorce decrees, and probate orders should be recorded promptly to maintain clear chains of title.

How far back should a title search go?

Most title searches look back 40–60 years into a property’s history, or far back as needed. Each state has its own rules about how far back you need to search. Some states only require checking the last 30–40 years.

But if the property might have special rights attached to it—like rights to mine for minerals or Native American land claims—you might need to search all the way back to when the land was first owned privately.

Consult title professionals if in doubt. They know exactly how far back to search based on their state’s rules and the type of property.

Can I do my own title search?

While you can search property records yourself, it’s risky.

Property records are kept in many different places and written in legal language that’s hard to understand. Plus, one document often refers to other documents you might not know to look for.

Professional title searchers have special tools and training to find problems. Though hiring them costs money, it’s much cheaper than fixing a title problem you might miss on your own.

What happens if a title problem surfaces after closing?

This is why title insurance is so important. If someone claims they have rights to your property because of an old title problem, your title insurance company will handle it. They’ll pay lawyers to defend your ownership and pay you if you lose any money because of the problem.

Almost every bank requires title insurance when they give a mortgage. You can also buy extra insurance to protect against specific risks to your property.

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2. Investopedia, “Title Search: What It Is, How It’s Done, and Title Insurance.” https://www.investopedia.com/terms/t/titlesearch.asp
3. Rhodes Law, “Warranty Deed vs. Quitclaim Deed: How are they different?” https://www.rhodeslaw.com/warranty-deed-vs-quitclaim-deed-how-are-they-different/
4. Legal Templates, “Repercussions of a Quitclaim Deed.” https://legaltemplates.net/resources/real-estate/repercussions-of-a-quitclaim-deed/
5. South Oak, “Understanding Chain of Title in Real Estate Transactions.” https://southoaktitle.com/blog/chain-of-title
6. EasyTitleSearch, “10 Title Problems to Watch For.” https://easytitlesearch.com/articles/10-title-problems-to-watch-for/
7. Rocket Lawyer, “Foreclosure Law: What Banks Can and Can’t Do.” https://www.rocketlawyer.com/real-estate/home-ownership/real-estate-financing/legal-guide/foreclosure-law-what-banks-can-and-cant-do
8. PropLogix, “How do I correct a mistake on a recorded deed?” https://www.proplogix.com/blog/how-do-i-correct-a-mistake-on-a-recorded-deed/
9. Bankrate, “What is a title search on property?” https://www.bankrate.com/real-estate/property-title-search/
10. Natural Resources Revenue Data, “Native American Ownership and Governance of Natural Resources.” https://revenuedata.doi.gov/how-revenue-works/native-american-ownership-governance/
11. LendingTree, “What Is Title Insurance and Do You Need It?” https://www.lendingtree.com/home/mortgage/why-you-need-title-insurance/