Abstract of Title
An abstract of title is a comprehensive summary of the legal history of a specific parcel of real estate. It outlines all the recorded documents affecting the property, such as deeds, mortgages, liens, easements, and any other relevant legal instruments. The primary purpose of an abstract of title is to provide a clear chain of ownership and reveal any encumbrances or legal issues that may affect the property’s title.
The abstract of title typically begins with the original grant of the property, tracing the ownership through subsequent sales, transfers, and other legal actions. It may also include a description of the property, the names of past and present owners, and any significant legal judgments or claims against the property.
For example, if a property was sold several times over the years, the abstract of title would document each sale, including dates and the names of the buyers and sellers. If a mortgage was placed on the property, it would also be included in the abstract.
In many cases, an abstract of title is used during real estate transactions to ensure that potential buyers are fully informed of any issues that could affect their ownership rights. It is often reviewed by title companies, attorneys, and lenders to assess the risk associated with the purchase or financing of the property.
« Back to Glossary Index