California Real Estate Broker ExaminationTransfer of PropertyMedium
A buyer is purchasing a home and receives a preliminary title report that shows a long list of previous owners, transfers, and encumbrances. The record of ownership, beginning with the first owner and continuing to the present owner, is known as the:
- AAbstract of Title
- BCloud on Title
- CChain of Title
- DQuiet Title Action
Show answer & explanationAnswer & explanation
Correct answer: C. Chain of Title
The chain of title is the chronological record of ownership transfers for a property, from the original grant to the current owner, showing how title passed from one person to the next.
Why the other options are wrong
- A. An Abstract of Title is a summary of all recorded documents affecting a property, not just the ownership transfers.
- B. A Cloud on Title is any claim, encumbrance, or defect that impairs the title, not the record itself.
- D. A Quiet Title Action is a legal suit to remove a cloud or dispute over a title.
Chain of Title
The chronological record of ownership transfers for a piece of property, from the earliest owner to the current owner.
- Shows how title passed from owner to owner
- Essential for verifying legal ownership
- Reveals potential breaks or defects in title
- Included in a title search
Memory trick: Chain of Title: Like a 'chain' linking all past owners.