Abstract of Title
An abstract of title is a condensed history of all recorded documents affecting a property's ownership, including deeds, mortgages, liens, and other encumbrances, used to verify clear title before a real estate transaction.
Exam Tip
Abstract = condensed HISTORY of all recorded documents. Chain of title = sequential OWNERSHIP history. Both help verify clear title.
What is an Abstract of Title?
An abstract of title is a comprehensive summary of a property's complete ownership history from its original grant to the present day. It documents every recorded transaction, lien, and legal action that has affected the property's title.
What an Abstract Contains
| Document Type | Information Provided |
|---|---|
| Deeds | All transfers of ownership |
| Mortgages | Current and paid-off loans |
| Liens | Tax liens, mechanic's liens, judgments |
| Easements | Rights of way, utility easements |
| Encumbrances | Restrictions, covenants |
| Court Records | Lawsuits, probate proceedings |
Abstract vs. Chain of Title
| Abstract of Title | Chain of Title |
|---|---|
| Summary/condensed format | Complete sequential history |
| Lists key information | Contains full documents |
| Used for quick review | Shows unbroken ownership |
Who Prepares an Abstract?
- Title companies - Most common today
- Abstract companies - Specialize in title research
- Attorneys - May prepare or review
Purpose of an Abstract
- Verify ownership - Confirm seller has right to sell
- Identify defects - Find liens, encumbrances, or breaks
- Support title insurance - Basis for issuing policy
- Legal protection - Document for disputes
Cost
| Service | Typical Cost |
|---|---|
| Update existing abstract | $200 - $400 |
| Create new abstract | $1,000+ |
| Title search | Included in title insurance |
Modern Practice
Today, most buyers purchase title insurance rather than relying solely on an abstract. The title company performs a title search and issues insurance against defects.
Study This Term In
Related Terms
Chain of Title
Real EstateChain of title is the complete, sequential history of all transfers of property ownership from the original owner to the present owner, used to verify clear and marketable title.
Title
Real EstateTitle is the legal right to own, use, and dispose of real property, representing the bundle of rights that come with property ownership.
Title Insurance
Real EstateTitle insurance is a policy that protects property buyers and lenders against losses from defects in title, such as liens, encumbrances, or ownership disputes that existed before purchase.
Cloud on Title
Real EstateA cloud on title is any document, claim, lien, or encumbrance that could impair or affect the owner's title to property, making the title unmarketable until resolved.
Deed
Real EstateA deed is a legal document that transfers ownership (title) of real property from one party to another.