Escrow & TitleIntermediateCalifornia Exam

What is a 'chain of title'?

AA list of all properties owned by one person, per customary closing procedure in California

BThe chronological sequence of historical transfers of title to a specific propertyCorrect

CA document linking the deed to the mortgage, under standard California escrow and title practice

DA lender's requirement for title insurance coverage amounts, as typically handled by an escrow officer

Why The chronological sequence of historical transfers of title to a specific property Is Correct

Answer B: The chronological sequence of historical transfers of title to a specific property

The chain of title is the complete chronological history of ownership and encumbrances for a specific parcel of real property, tracing title from the original grant through all subsequent transfers to the present owner. Title companies search this chain to identify any defects, gaps, or encumbrances that could affect ownership.

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

Chain of Title

The sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.

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