What is Title Abstract?

A title abstract provides a summarized history of a property’s ownership and legal status. It details past owners, transfers, mortgages, liens, and any legal issues tied to the property. An abstractor gathers this information from public records to offer a clear overview of the property’s titles, helping to identify potential issues before a sale or transfer.

1. Search Public Records
An abstractor, typically a professional or title company, searches public records at the county courthouse or online databases. This search includes deeds, mortgages, liens, easements, and court records.

2. Review Documents
The abstractor reviews each document related to the property, focusing on key details like ownership transfers, encumbrances (such as liens or easements), and any legal actions affecting the property.

3. Compile Information
The abstractor compiles relevant information from each document into a chronological summary, noting significant events such as sales, inheritance, or foreclosures.

4. Identify Issues
The abstractor identifies potential issues or “clouds”, such as unresolved liens or disputes, which could affect the property’s clear ownership.

5. Prepare the Abstract
The abstractor prepares a title abstract, a written summary of the property’s legal history, highlighting key points found during the search. This document helps title companies or attorneys evaluate the title’s status.

6. Verification
A Title attorney or underwriter reviews the final abstract, verifying the information and potentially issuing a title opinion or title insurance based on the findings.

This process ensures that potential buyers or lenders are aware of any issues that could affect the property’s ownership or value.