6.5 Title Records

Title Records

Title records are public real estate records maintained by the county, documenting ownership history, liens, easements, and encumbrances for every parcel. These records protect the public, buyers, and lienholders by providing constructive notice of property conditions, ownership, and claims.

• Chain of title: The succession of owners dating back to the original grant. A break or defect in the chain creates a clouded title, which may require a suit to quiet title.
• Abstract of title: A written summary of the property’s title history, including all recorded liens and encumbrances.
• Recording system: Each state has its own requirements for recording documents. The Torrens system (used in some states) requires registration for title and encumbrances to be legally effective.
• Title evidence: To prove marketable title, sellers may provide a Torrens certificate, title insurance policy, attorney’s opinion of abstract, or a title certificate. Title insurance is most common, protecting against losses from title defects.

Check-In Questions

• What is the main purpose of recording title documents?
  To keep documents private
  To provide constructive notice of ownership and claims
  To transfer title automatically
  To avoid paying taxes
  Show Answer

  Correct Answer: To provide constructive notice of ownership and claims
  Recording gives public notice and protects buyers and lienholders.
• What is the best evidence of marketable title?
  A verbal agreement
  Title insurance policy
  Unrecorded deed
  Personal reference
  Show Answer

  Correct Answer: Title insurance policy
  Title insurance is the most common and reliable evidence of marketable title.