Documenting Ownership Transfers: Each and every time the ownership has changed hands, it needs to be documented.
Deed and Conveyances: This might capture the legal documents representing the transfer of ownership.
Legal description of the property: The description of the property boundaries and characteristics.
Other public records that may be searched: tax liens, judgments, and easements among others
The time period to be covered by the search may be expanded or contracted based on the proposed use of the report. In environmental applications, for example, to meet the requirements laid out in the ASTM E1527-21 standard, it is often traced back to 1940 because such period gives background information about the past uses of the property, including industrial or agricultural activities that could have generated contamination.
A Chain of Title search can span a short to infinite period depending on what may be required by a client. AFX provides Chain of Title searches going back:
A Chain of Title Search Report is a document that serves to identify and document the history of ownership applicable to a specific property. It is very helpful in real estate, legal, and environmental studies, especially within the process of Phase I Environmental Site Assessment (ESA). It could also involve historical records that detail the succession of title transactions affecting the property within a specific period, usually all the official land records for many decades or centuries.
A correctly conducted Chain of Title Search can help prevent possible litigation. Showing all previous ownerships is a vital step in understanding the background of a specific property. In environmental assessments, it also helps identify potential contamination liabilities associated with past owners or land use.
This overview explains the importance of a Chain of Title Search, how it is conducted, and what it typically comprises, with a focus on AFX's Chain of Title Reports. By the end, you'll understand how this report fits into the broader context of property transactions and environmental due diligence.
The Chain of Title Search Report is very important in more than one respect and finds extensive application, especially in the following industry branches:
1. Real Estate Transactions
In any real estate transaction, it is crucial for the property owner to hold a clear and legal title. A Chain of Title report verifies that no prior owners have unresolved claims that could lead to legal issues after the sale. A thorough ownership history ensures an unbroken and transparent chain of title, minimizing the risk of disputes.
2. Legal Due Diligence
Lawyers in cases related to property disputes, estate settlements, and even foreclosures rely greatly on these reports when the change in ownership needs to be confirmed. This step helps to ensure that no legal claims arise that may question current ownership. Ownership is also verified with a report in order to deter any possible title fraud and to ensure that the past dealings were legitimate.
3. Phase I Environmental Site Assessments
Quite often, commercial properties require a Phase I ESA to investigate the potential concerns for environmental impairment, such as contamination or exposure to hazardous materials. The Chain of Title report plays an essential role in this process. It allows the environmental consultant to conduct research on whether any of the previous owners had operations that could have resulted in environmental impairment, thus helping to evaluate the likelihood of contamination and further investigation or remediation that might be warranted.
When the search is complete, all of the data is compiled into a final report. A typical Chain of Title Report prepared by AFX will contain:
AFX was formed to rapidly position itself as one of the leading providers of Chain of Title reports nationwide. AFX's reports are widely used in Phase I Environmental Site Assessments, in real estate transactions, and during legal due diligence. Their Chain of Title reports are comprehensive, professional, and adhere to all ASTM guidelines in ensuring accurate, dependable information is available to their clients.
In order to comply with ASTM guidelines, AFX offers Chain of Title Reports going back 50 years, 60 years, and most commonly back to 1940. This research will be conducted using official land records corresponding to the subject property. Most commonly, these documents will be recorded with the respective County, but may be recorded on either the State or City level. The research is completed by reviewing the Grantor and Grantee indexes available in the local document repositories.
Whether you are mortgage financing a property acquisition or self-financing, compliance with ASTM E1527 requires that you perform an environmental lien and activity and land use limitation search. You might just discover that a reported release of hazardous substances at your property would preclude your intended redevelopment unless you undertake the removal of contaminated soil as a prerequisite. Owners and purchasers of commercial property have to decide what land use restrictions they are required to comply with in order to facilitate environmental concerns during due diligence and negotiation of the purchase agreement.
It is our understanding that some companies supplying environmental lien search reports use only information available online. In our experience, an accurate search typically involves an experienced title researcher actually visiting the land title recorder's office to search for and provide copies of the most current and accurate information.
We offer a variety of land title record searches to suit your needs:
Environmental Lien/AUL Searches The current property deed is searched for recorded environmental liens and AUL. A report is provided that contains a copy of the current vesting deed, if available, plus all recorded documents related to the identified lien or restriction of property use due to environmental conditions at the property. Please note below: This service does not include judicial or governmental agency records.
Chain of Title Report with Environmental Lien/AUL Search The chain of ownership of a parcel of land back to a date of your choice, inclusive of the property's legal description, a search for environmental liens/AULs, and a copy of the current deed insofar as available. We can further tailor your report to include a search for other recorded title documents. Please feel free to contact us for more information about your land title research options and for pricing information.