What is an Abstract Of Title?
Abstract of Title is the summed records of all of the titles, transfers, and a brief overview of the documentation and historical legal actions that are connected to a property. An abstract of title for property usually will begin with the original grant title and include any additional claims, such as easements, encroachments, encumbrances, liens, litigations, restrictions, and tax sales. This document is needed by investors as a report of the title status of a real estate.
If this document is unavailable for a property for some reason, the intending buyers should acquire a copy of the abstract of the title before entering a contract for the transfer of ownership. Similarly, property owners should maintain a copy of the summary of claims for their properties, as these documents can often be very costly to replace. As a conclusion, many property owners will store before-mentioned records in safe security boxes as a preventative measure against theft or fire. An owner who loses access to his/her abstract of title can re-create the abstract with the assistance of a title company or the county recorder with jurisdiction over the property. In the U.S., it is a standard for properties and events to be recorded through county recorders, and subsequently traceable through abstracts.