Chain Of Title
Categories: Real Estate, Regulations, Investing, Company Valuation
It's all about ownership. That's what "title" means. If you have it, i.e. you have title to something, you own it. Your car, your home, your shortcomings in life...whatever.
The chain of title is every transaction involving that title. Think: real estate. The title to a property will be researched by a title agency when the property is sold. This is done largely to determine if the prior owners had any liens on the property that would interfere with the pending sale.
Chain of title also applies to rights...farming, timber, film, music, etc. Say you’re buying a llama farm and want to verify that the title is clear, and buy title insurance from the title agency. The title agency will investigate the title history, and then insure the clear title in case anyone makes a claim later. This process and insurance gives you reasonable protection against someone laying claim to your llamas later.
