Chain of Title

Real property chain of title

Deeds, mortgages, deeds of trust, assignments, releases and judgments affecting real property are recorded in the county (or equivalent) land records. A title search traces those recorded documents to confirm who holds what interest. Each state’s recording statute decides what may be recorded and what effect recording — or failing to record — has against later purchasers and creditors.

Two chains in a mortgage loan

• The note moves by indorsement and delivery or transfer under UCC Article 3 (or by sale under Article 9). Those transfers are usually not recorded in land records.
• The mortgage or deed of trust is recorded, and later assignments of it may also be recorded. Because the mortgage follows the note, the recorded chain and the note’s history may not line up document-for-document.

Why gaps matter — and when they may not

Whether a gap or error in recorded assignments affects a foreclosure depends on state law: some states require the foreclosing party to be the holder of record of the security instrument before a nonjudicial sale, while others focus on the right to enforce the note. Check your state’s foreclosure statute and court decisions.

How to research a chain of title

• Search the county recorder’s index by grantor/grantee and by parcel number.
• Collect each recorded instrument and note its recording date and instrument number.
• Compare the recorded assignments with the note’s indorsements and any allonges produced in a case.
• Read your state’s recording and foreclosure statutes on what each document must show.

Researching chain of title in your state

First, find the statute or rule that governs chain of title where you live. State law controls most of these questions, so the answer can change from one state to the next. Next, read recent decisions from the appellate courts in your state. They show how judges apply the law today. Also, check the local rules of the court that would hear your case. Our state procedures guide links to each state’s official rules. In addition, the Research Center explains how to confirm a source is still good law.

Sources and further reading

Official sources used on this page:

• Current federal rules of practice and procedure (uscourts.gov)

Related reading on Lawtopolis:

• Assignments of Notes, Mortgages and Receivables
• Standing
• Nonjudicial Foreclosure (Power of Sale)
• Indorsement, Negotiation and Transfer of Notes