If you are buying a home, you probably assume the person selling it actually owns it. That assumption is usually correct, but it is not automatic. Someone has to verify it, and that verification depends on the chain of title.
In this guide, Furukawa Castles Karic LLP explains the chain of title in real estate and the problems that may appear in an ownership record. If you run into a title issue during a transaction, a real estate attorney in San Francisco, CA, can help you sort out where things stand and what your options are.
What Is a Chain of Title?
A chain of title is the documented history of a property’s ownership. Similar to a family tree, each link shows how ownership passed from one person or entity to the next. County records trace the ownership transfers that have been properly documented.
Why Is Property Ownership History Important?
A property’s ownership history helps verify whether the current seller has the legal authority to transfer the home. Without clear records, a buyer may not know whether a previous transfer was fraudulent.
The records may also reveal if an heir’s ownership interest was overlooked. A documented history helps protect everyone involved in the transaction. It also reduces the risk of an unknown ownership claim appearing after closing.
How a Title Search Works
A title search allows professionals to build and verify the property’s chain of title. Researchers examine county records and consult additional legal documents when necessary.
A search may uncover unpaid property taxes or an unresolved lien. It may also reveal a deed that was prepared or recorded incorrectly. The search looks for title defects that create uncertainty about the property’s legal owner.
What You’ll Find in Public Records
The chain of title is built from public records kept at the county level. Here’s what may show up when researching a chain of title:
- Deeds: Documents that transfer property ownership
- Liens: Financial claims tied to unpaid debts
- Easements: Rights to use part of the property
- Court judgments: Rulings that may affect ownership
Together, these records show the property’s ownership history and reveal claims or restrictions that may require further review.
Common Problems With Ownership Transfers
A few common issues that can complicate an ownership transfer:
- Incorrect deed information can delay recording.
- Missing heirs may affect legal ownership.
- Divorce can create competing property claims.
- Inheritance may require additional court records.
- Incomplete paperwork for your home sale can prevent closing.
Reviewing county and court records carefully can help you identify and address these issues before the property changes hands.
Resolve Title Issues With Legal Guidance
Understanding the chain of title in real estate helps buyers verify that the seller has the legal authority to transfer the property. At Furukawa Castles Karic LLP, we help clients review title records and address complications that may delay a transaction.
We can also explain the process of removing a lien from your property title when an unresolved claim could delay the transaction. Call (415) 510-2823 to speak with our real estate law team serving San Francisco.