An abstract of title is compiled by a title company or abstractor who searches public records and creates a chronological summary of every recorded document affecting the property. This includes deeds, mortgages, liens, easements, court actions, tax sales, and other encumbrances. The abstract is then reviewed by an attorney who issues a title opinion.
A buyer in a rural area receives an abstract of title that is 200 pages long, dating back to the original government patent. The buyer's attorney reviews the abstract and issues an opinion that the title is marketable, subject to a utility easement noted in the records.
Remember that an abstract is a SUMMARY of the title history, not a guarantee. An attorney's opinion based on the abstract is also not a guarantee — only title insurance provides financial protection. Exam questions may ask about the difference between an abstract (historical summary) and a title insurance commitment (promise to insure).
Related Terms
Related Concepts
A deed is a written legal document that conveys (transfers) ownership of real property from one party to another. It must be delivered to and accepted by the grantee to be effective.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
A special warranty deed guarantees that the grantor has not caused any title defects during their period of ownership, but does not warrant against defects that existed before the grantor acquired the property.
A quitclaim deed transfers whatever interest the grantor may have in a property without making any warranties or guarantees about the quality of title. It offers the least protection to the grantee.
A bargain and sale deed implies that the grantor holds title and possession of the property but does not include warranties against encumbrances or title defects.
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