What is chain of title?

• A. The history of ownership transfers for a property, showing all recorded interests and any liens.
• B. The physical chain used as collateral.
• C. A list of all tenants in property.
• D. The sequence of closing steps.

Answer: (B)

Chain of title is the recorded history of a property's ownership and any liens or encumbrances that affect it, tracing transfers from the earliest owner to the current one. This documentation shows every deed and recorded interest so lenders can verify that the title is marketable and that there are no gaps or unresolved claims. It is not a physical chain used as collateral, not a list of all tenants, and not the sequence of closing steps.