Escrow & Title
What is the 'chain of title' and why is it important in Illinois real estate?
AThe history of all price changes for a property
BThe chronological sequence of recorded ownership interests and transfers for a property✓ Correct
CA lender's record of payment history on a mortgage
DThe sequence of agents who have listed a property
Explanation
The chain of title is the chronological sequence of all recorded documents affecting title to a specific parcel. An unbroken chain of title demonstrates that ownership can be traced from a definitive starting point through each transfer to the current owner.
People Also Study
Related Illinois Questions
- In Illinois, a property owner may transfer real property at death without probate through which of the following methods?Escrow & Title
- In Illinois, who typically pays for the owner's title insurance policy?Escrow & Title
- Under the Illinois Condominium Property Act, a condominium unit owner has an ownership interest in:Property Ownership
- When property is owned by an Illinois land trust, the trustee must execute any deed, mortgage, or other instrument affecting title at the direction of:Property Ownership
- Under Illinois law, which party typically pays for the owner's title insurance policy in a residential transaction?Contracts
- In Illinois, a real estate closing attorney who discovers a cloud on the title during their review should:Escrow & Title
- In a quiet title action in Illinois, a property owner goes to court to:Escrow & Title
- What is a 'second mortgage' or 'junior lien' and how does it affect an Illinois property owner's risk?Finance
Key Terms to Know
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.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
Study This Topic
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →