Abstract of Title
Definition - What does Abstract of Title mean?
Abstract of Title is a brief summary of the various activities that affect the ownership of parcel of land. When a business or person agrees to buy a property, they arrange an examination of history of the title of the property. It furnishes raw data to prepare a policy of the title insurance for the parcel of land in question. It is basically a short summary or history of ownership of the property.
It includes a list of transfers, conveyances and other evidences of the title that include conveyances, rants, records, judicial proceedings and will that can affect the title. It also includes the list of liens and encumbrances of records on land along with the statement whether encumbrances and the liens still exist.
Petropedia explains Abstract of Title
An abstractor is required to refer to various different sources to check whether the parcel of land is correct and true. The original survey of the government is verified by the abstractor which includes overlaps and gaps in the land ownership. The abstractor is required to understand various means that can describe exact boundaries of the piece of land and also must recognize the unacceptable methods.
The benefits of using abstracts:
- They can trace history of ownership of a particular property.
- They refer to the documents and deeds that no longer prevail in deed bundle and supply the most important information missing.
- They provide the important points of every deed so as to avoid the need of reading original deeds in the bundle.