Every time a property is transferred, a new link is added to the chain of title. For title to be considered marketable, the chain must be unbroken — each transfer must flow logically from one owner to the next. A break in the chain, such as a missing deed, a misspelled name, or an improperly executed transfer, creates a cloud on the title that must be resolved.
A title examiner discovers that in 1985, the property was deeded from "Robert J. Smith" to a new owner, but the previous deed listed the owner as "Robert James Smith Jr." This name discrepancy creates a break in the chain of title. A corrective affidavit or quiet title action may be needed.
Exam questions about chain of title often focus on what causes a "break" — common causes include missing deeds, name discrepancies, improperly executed documents, and unrecorded transfers. A break in the chain creates a "cloud on title" that must be cured, often through a quiet title action.
Related Terms
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
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