Also known as:chains · chain of custody · chain of title
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
1
A sequence of recorded instruments through which ownership of real property is traced from the original grant to the present holder. A break or gap in the sequence renders title unmarketable because a reasonably prudent purchaser would refuse to accept it. Purchasers receive constructive notice only of instruments appearing within their own chain under recording acts.
2
Sense 1
1
Sense 1
A sequence of recorded instruments through which ownership of real property is traced from the original grant to the present holder. A break or gap in the sequence renders title unmarketable because a reasonably prudent purchaser would refuse to accept it. Purchasers receive constructive notice only of instruments appearing within their own chain under recording acts.
Examples5
Gap Prevents Marketable Title
Continental Bank contracted to sell land to Cade Carpenter. A prior deed in the records showed a conveyance from an unrelated grantor that skipped Continental's predecessor, creating a gap. Carpenter refused to close. The gap rendered title unmarketable, allowing Carpenter to rescind.
Easement Outside Chain
Sense 2
2
Sense 2
A series of events linking a defendant's conduct to a plaintiff's injury. An intervening act by a third party exercising independent judgment may break the chain and relieve the original actor of liability.
Examples1
Physician Breaks Causal Chain
Cecilia Cabrera suffered injury after taking a prescription drug. The manufacturer had warned her physician of the risks. The physician exercised independent judgment in prescribing the medication. That judgment broke the causal chain between the manufacturer and Cabrera.
A series of events linking a defendant's conduct to a plaintiff's injury. An intervening act by a third party exercising independent judgment may break the chain and relieve the original actor of liability.
Each sense below has its own examples, sources, and questions.
Caleb Chang purchased property from Connor Clark. An easement benefiting a neighboring parcel had been recorded in a deed from a common grantor to a stranger. Chang had no actual knowledge. The easement lay outside Chang's chain of title and did not bind him.
Unreleased Lien Clouds Title
Cypress Technologies agreed to buy a parcel from Colin Chambers. A mortgage recorded against Chambers's predecessor remained unreleased. The lien constituted a break in the chain that rendered title unmarketable. Cypress could refuse to close unless Chambers cured the defect.
Recorded Deed Supplies Notice
Curtis Cannon bought land from Canyon Construction. A prior deed conveying an easement had been properly recorded in the grantor-grantee index linking Cannon's predecessors. Cannon took subject to the easement because it appeared in his chain of title.
Forged Deed Conveys Nothing
Citadel Security received a deed from a forger purporting to convey land owned by Connor Clark. The forgery was void and passed no title. Even if Citadel recorded and lacked notice, the forged instrument created no link in any valid chain of title.
Frequently Asked3
What defects render title unmarketable under chain-of-title rules?+
Unreleased liens, breaks or gaps in the sequence of recorded conveyances, outstanding easements or covenants appearing in the chain, and litigation that clouds ownership each constitute defects. A buyer may rescind or refuse to close when any such defect exists and the seller cannot cure it.
Does an instrument recorded outside a purchaser's chain of title give constructive notice?+
No. A purchaser is charged with constructive notice only of instruments that appear in the chain of title through which the purchaser claims. An easement or covenant recorded in a deed from a common grantor to a stranger lies outside the chain and supplies no notice.
How does a forged deed affect the chain of title?+
A forged deed is void and conveys no title. The forger acquires nothing, so the instrument creates no valid link. Subsequent bona fide purchasers may receive protection under recording acts only to the extent the jurisdiction's race, notice, or race-notice rules and shelter doctrine permit.
494 U.S. 872, 110 S. Ct. 1595, 108 L. Ed. 2d 876 (1990)Constitutional Law
…exercise claim is a spectral march; grant this one, a voice whispers to each judge, and you will be confronted with an endless chain of exemption demands from religious deviants of every stripe”). This Court, however, consistently has rejected similar arguments in past free exercise cases, and it should do so here as…