Escrow & TitleIntermediateAlabama Exam

The chain of title refers to:

AThe legal description of the property, though the precise application can differ somewhat from one county to the next
BThe sequence of historical ownership transfers for a property from the earliest recorded transaction to the presentCorrect
CThe list of liens on a property
DThe schedule of closing costs

Why The sequence of historical ownership transfers for a property from the earliest recorded transaction to the present Is Correct

Answer B: The sequence of historical ownership transfers for a property from the earliest recorded transaction to the present

The chain of title is the complete, chronological history of a property's ownership, showing every transfer from the original grant to the current owner. A clear chain of title is essential for insurable and marketable title.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

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