Under California law, what is the term for the concept describing the sequential chain of recorded ownership transfers and encumbrances affecting a specific parcel of real property, tracing title from an original grant to the present?
Correct Answer
C) Chain of title
Chain of title is the legal concept referring to the chronological sequence of recorded instruments — deeds, liens, encumbrances, and other documents — that trace ownership of a parcel from its original conveyance to the current owner. Title examiners review the chain of title to verify unbroken ownership and identify defects or encumbrances. California Civil Code §1213 establishes that properly recorded instruments provide constructive notice and form the basis of the chain of title.
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Previous Question
A California escrow is about to close on a residential sale. The title company reports that the property has a recorded CC&R (Covenants, Conditions, and Restrictions) from a homeowners association. The buyer asks whether the CLTA title insurance policy will protect him if the HOA enforces a restriction he disagrees with. The agent should explain that:
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Under California law, which of the following best describes the legal role of an escrow holder in a real estate transaction?