Escrow & Title
The title examination process in Tennessee involves reviewing the chain of title to identify any:
AEnvironmental concerns on the property
BGaps, breaks, clouds, or defects that could affect the buyer's ownership✓ Correct
CZoning violations by prior owners
DBuilding code compliance issues
Explanation
A title examination reviews the recorded documents in the chain of title to identify gaps (missing conveyances), clouds (adverse claims or liens), breaks in the chain, and other defects that might impair the buyer's clear ownership.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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