What Is an Abstract of Title?

An abstract of title is a document that is used to record information about a particular piece of property. When a real estate transaction takes place, the abstract of title plays a vital role in the process of the sale. 

Abstract of Title

From the time that a piece of land was originally granted to the first owner, the abstract of title keeps track off all of the owners of that property. It keeps track of how may times the property has changed hands and any pertinent information about those transactions. It also keeps track of any liens or claims against the property that could affect the clear title for the owner.

Importance

If you are getting ready to buy piece of property, it is important to look at the abstract of title. This can be obtained by working with a title company. The title company can run a title search and get information about the property to determine if it is owned free and clear. If there are any encumbrances on the title, you should know this before you get involved with a purchase. Once the title company runs a title search they can offer title insurance that will protect you in this process.

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