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LSDefine

Simple English definitions for legal terms

chain of title

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A quick definition of chain of title:

Chain of title: Chain of title is a list of all the people who have owned a piece of property over time. It's important because it helps prove who legally owns the property. When someone wants to buy property, they should hire a title company to check the chain of title to make sure the seller really owns it. If there's a problem with the chain of title, the buyer could lose their money and not get the property. Sometimes, people have to go to court to fix problems with the chain of title. People can buy title insurance to protect themselves from problems with the chain of title.

A more thorough explanation:

Definition: Chain of title refers to the historical record of ownership transfers for a specific piece of property. It is important for establishing legal ownership of real estate, vehicles, patents, and other tangible and intangible property. The chain of title is kept in registry systems by state governments and some private companies.

For example, if someone wants to buy a house, they should hire a title company to trace the chain of title to ensure that the seller has valid ownership. If the seller does not have a valid title, the buyer could end up paying for something that they do not legally own.

Discrepancies in the chain of title can lead to legal disputes, and many people buy title insurance to protect themselves from losses due to imperfect titles.

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