In real estate, what does "chain of title" refer to?

"Chain of title" refers to a sequence of deeds that documents the history of ownership of a particular property, tracing it back from the current owner to the original owner. This concept is crucial in real estate as it helps establish clear ownership rights and ensures that the title to the property is free of encumbrances or claims from previous owners. A well-maintained chain of title provides security for buyers and lenders, as it validates that the seller has the legal right to transfer ownership.

The importance of the chain of title lies in its role in preventing title disputes. If there's a break in the chain or if any deeds are missing or improperly recorded, it could lead to legal problems or challenges against the validity of ownership. This is why title searches are conducted during real estate transactions to verify that the property’s chain of title is complete and accurate.

The other options reflect different aspects of real estate but do not accurately define what chain of title means. A list of tenants pertains to rental agreements rather than ownership, a log of real estate transactions relates to market activity rather than ownership history, and a summary of property inspections focuses on physical assessments rather than legal ownership records.