Chain of Title

A Chain of Title is described as the sequence in which historical transfers of title to a property have occurred. The “chain” would run from the present owner back to the original owner of the property (when the property came into existence). Such information can be obtained from public records through the County Clerk’s or Recorder’s Office.

The objective of the title search is to determine if the title is a marketable title. Marketable title is a title free from encumbrances and any reasonable doubt as to its validity.

This “chain of title” could mean research that goes back 70-100 years. The search usually starts with the current property owner and then proceeds using maps to conduct historical research. Some of the factor affecting the title and the marketability of title are various statutory liens that include:
■ Existing Mortgages which also includes home equity loans and lines of credit that are secured by a mortgage in addition to primary mortgages.
■ Existing Judgments where state and federal judgments entered in New Jersey state courts or Federal District Courts of New Jersey will act as liens against the property. All real estate is liable to be levied upon and sold by executions to be issued on judgments obtained in any court of record of New Jersey for the payment of money when the judgment is properly docketed. These judgments may be discharged by a court order, or the filing a warrant of satisfaction with the appropriate county clerk signed by the judgment holder or the attorney of record authorizing the county clerk to satisfy the judgment of record. They can also be discharged by the acknowledgment of satisfaction on the record by the county clerk after the sheriff or other officer returns an execution of judgment issued as being satisfied.
■ State and Federal Tax Liens can be imposed against a property in such instances as death taxes. Three such taxes in the state of New Jersey include: Transfer Inheritance Taxes, Estate Taxes and Federal Estate Taxes.
■ Real Estate Taxes and Assessments stemming from municipal real estate taxes, municipal improvement assessments, water and sewer taxes all act as liens against the property. These must all be paid off in full before or at the time of closing.

The information contained on this website is not intended to provide legal advice but is simply informational, and the reader is advised to consult with legal counsel. Every effort has been made to provide the accuracy and reliability of the information provided on this website. However, the information is provided “as is” without warranty of any kind.