Maryland Title Insurance Producer Practice Exam 2026 - Free Title Insurance Practice Questions and Study Guide

The term "chain of title" refers to the sequence of historical transfers of title to a property. This encompasses all the ownership records dating back to the original grant or patent. A complete chain of title traces the ownership from one individual or entity to the next, documenting how the property has changed hands over time. This historical record is crucial in title insurance and real estate transactions, as it helps establish who currently holds the title to the property, identifies any potential claims or disputes, and ensures that the seller has the rightful authority to sell the property.

By maintaining an accurate chain of title, potential buyers can protect themselves from future claims against the property, such as liens or disputes from prior owners who might assert rights over the property. This concept is essential for due diligence in real estate transactions, ensuring that ownership is clear and uncontested.