Chain of title

[Harris Harris]

Just trying to educate myself. I understand the chain of title is issued by the title company to the lender. Is this a document that they create showing the history of the property? What exactly is chain of title doc?

[Peter Walther]

Chain of title refers to a chronological list of all documents which affect or have affected title to a particular piece of property.  Deeds, mortgage, easements, restrictions, etc.  Some appear to affect title today, such as the deed into the current owner, mortgages which are still unsatisfied of record, easements and restriction that run with the land, etc.  Others may appear not affect title any longer but need to be examined to ensure they were properly executed and recorded.

The title insurer or its agent then issues a title commitment that lets the proposed insured, be it the lender or the purchaser know what matters need to disposed of before a title policy is issued and what matters will appear as an exception in the policy.  For example, a deed from the seller to the buyer/borrower and a mortgage from the buyer borrower to the lender will need to be obtained and recorded.  A satisfaction of any open mortgages appearing in the chain will likewise need to be obtained and recorded.  Easements and restrictions will generally appear as exceptions since they aren't released, and the buyer is taking title subject to them.

I hope this helps.