What is defined by the term “abstract of title”?

The term “abstract of title” refers to a summary of the legal history and ownership of a property. This document compiles all relevant public records relating to a property, including prior ownership, liens, easements, and other legal interests that may affect the title. The abstract serves as a crucial tool for identifying any potential legal issues that could impact the transfer of ownership or use of the property.

A well-prepared abstract is essential for title insurance underwriters and for buyers to ensure that they are acquiring a clear title to the property. It summarizes the chain of title and reveals any discrepancies that may need to be resolved prior to closing. This makes it a fundamental part of the real estate transaction process. The focus on the legal history distinguishes the abstract of title from other documents that primarily address financial or regulatory aspects of real estate.