The chronological sequence of historical property transfers, from the earliest known owner to the present.
Why Chain of Title matters on the exam
This term belongs to Transfer of Title. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Chain of Title
Every Freehold question shows why the right answer is right — and cites its source.
A comparative market analysis (CMA) prepared by a listing agent for a seller is most similar to which of the following?
A broker's informal estimate of value, similar in concept to a BPO, prepared to help set a listing price
A formal USPAP-compliant appraisal prepared by a licensed or certified appraiser for lending purposes
A county tax assessment prepared to allocate the annual property tax burden among owners
A title insurance policy indemnifying the insured against defects in the chain of title
Show answer & explanation
A broker's informal estimate of value, similar in concept to a BPO, prepared to help set a listing price — A CMA is an agent's informal analysis of comparable sales to help price a listing, conceptually similar to a broker price opinion rather than a certified appraisal.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which factor most directly affects whether a lender may pursue a deficiency judgment after foreclosure?
The borrower's marital status at the time the loan was originated
The color of title conveyed by the deed in the original purchase
The number of previous owners appearing in the chain of title
Whether the loan is non-recourse or state law restricts deficiency judgments
Show answer & explanation
Whether the loan is non-recourse or state law restricts deficiency judgments — Some loans are non-recourse, and some states limit or bar deficiency judgments, especially after non-judicial foreclosure, so the ability to collect a deficiency depends on the loan type and applicable state law.
Source: PSI National Real Estate Exam Content Outline §4 Financing
Standard title insurance policies typically exclude coverage for:
Forged deeds discovered anywhere within the recorded chain of title to the property
Matters that would be revealed by an accurate survey but were never disclosed
Undisclosed heirs who later come forward claiming an ownership interest in the property
Recording errors made by the county clerk within the official public land records
Show answer & explanation
Matters that would be revealed by an accurate survey but were never disclosed — Standard title policies commonly exclude survey-related matters, such as boundary encroachments, unless an accurate survey is provided and reviewed, whereas extended or ALTA coverage may address such off-record risks.
Source: PSI National Real Estate Exam Content Outline §9 Transfer of Title
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