What is an Abstract of Title?
An Abstract of Title is a document that lists the transactions related to a certain piece of real estate. The title referenced in the term is the property deed. The abstract of title is an important document for real-estate analysis. It shows all of the transactions a particular piece of property has been involved in, including sales, transfers, and other important information.
How is an Abstract of Title Used?
Certain types of transactions are cataloged under a registry system. The registration system for titles and other real estate transactions is based on the Real Estate Conservation Registry. Most titles that involve the transfer of property or property rights must be recorded in the registry. An abstract of title serves two key purposes: preparation and prevention. In terms of preparation, an abstract of title is used by lawyers and other professionals in a preparatory capacity to ensure that all of the necessary property titles (ownership history) are in order. Usually, these documents are used to verify one party’s ownership of the property in question before a transfer of ownership contract is signed. Essentially, an abstract of title prepares a contract for a valid and lawful execution. Abstracts of titles also serve in a preventive capacity. Lawyers use these types of documents to assure their clients that the paperwork for their real estate transaction is in order. By verifying the sellers rightful and complete ownership of the respective property, a lawyer assures his client that there are no third parties that could challenge either the clients claim to the aforementioned property. An abstract of title prevents the effectiveness of future litigation that disputes the property rights by providing a solid and indisputable legal foundation on which a legal argument can be built. A proper abstract of title is an integral part of any real estate rights transaction. Its preparatory function enables attorneys and contract parties to close on deals quickly and efficiently, with full confidence that an executed contract will be valid and fully enforceable in a court of law. Additionally, an abstract of the title gives lawyers an air-tight legal argument in the event that the validity of an agreement is attacked legally.
Related Topics
- Property Law (Intro)
- Tangible and Intangible property?
- Knowledge Capital
- Calculated Intangible Value
- Real and Personal Property?
- Chattel
- Littoral Land
- Fixtures?
- Appurtenance
- Readily Removable Fixtures
- What is ownership?
- Role of Government in ownership of property?
- Allodial System
- Role of property rights in economic activity?
- What are the limitations on property ownership rights?
- What is nuisance?
- What is Zoning?
- What is Eminent Domain?
- Just Compensation
- What is Property Taxation?
- Assessment Ratio
- Millage Rate
- Homeowners Association (HOA)
- Accession?
- Rule of First Possession?
- Lost or Mislaid Items?
- Adverse Possession?
- Encroachment
- Contracts?
- Gift?
- Confusion?
- Establishing and transferring ownership in real property?
- Absolute Title
- Warranty Deed
- Register of Deeds
- Conveyance
- What is a fee simple interest in real property?
- Absolute Interest
- Restrictive Covenant
- What is a life estate in real property?
- What is a leasehold estate in real property?
- What are common types of co-ownership relationships in real property?
- Owning Real Estate Personally vs as LLC
- What if Co-Owners of Real Estate Want Out
- Community Property and Separate Marital Property?
- What is an easement interest in real property?
- What is a license of real or personal property?
- Bundle of Rights
- Absorption Rate
- Fair Housing Act
- Federal Housing Administration (FHA)
- Housing and Urban Development (HUD)
- National Housing Act
- Design Build Contract
- Building Permits
- Certificate of Acceptance
- Construction Surety Bond
- Acquisition, Development, and Construction Loan (ADC)
- Flipping (Real Property)
- Buy, Strip, and Flip
- Homeowner Affordability and Stability Plan
- Building Residual Method
- Accessory Dwelling Unit
- Property Management
- Cost-Plus Contract
- Real Estate Investment Fund
- Listing Agreement
- Property Lawyers
- Multiple Listing Service
- Home Equity
- Register of Deeds
- Title Search
- Opinion of Title
- Certificate of Title
- Abstract of Title
- Chain of Title
- Clear Title
- Cloud on Title
- Defective Title
- Defect of Record
- Action to Quiet Title
- Abeyance
- Encumbrance
- Affidavit of Title
- Warranty of Title
- Title Insurance
- American Land Title Association (ALTA)
- Earnest Money
- Private Mortgage Insurance
- Closing (Property)
- Settlement Statement
- Real Estate Settlement Procedure Act (RESPA)
- HUD-1 Form
- Closing Statement
- Closing Costs
- Buying Real Estate as an LLC
- What is a mortgage?
- What are the Rights of a Mortgage Holder?
- Deed of Trust or Security Deed?
- Trust Deed
- Certificate of Release
- Judicial Foreclosure
- Lis Pendens
-
Deficiency Judgment
- Short Sale
- Homeowners Protection Act
- Deed in Lieu of Foreclosure
- Tax Deed
- Tenancy at Will
- Closed End Lease Definition
-
One Percent Rule
- Net Lease
- Triple Net Lease (NNN)
- True Lease Definition
- Land Lease Option
- Hell or High Water Contract
- Habendum Clause
- Attornment
- Implied Warranty of Habitability
- Emblements Definition
-
Co-Tenancy Clause
- What is a bailment?
- Consignment
- Unilateral-benefit and mutual benefit bailments?
