With housing inventory still lagging, sellers continue to have the upper hand.
What is an abstract of title?
An abstract of title is the written history of a piece of land to document all transactions associated with that land from the time the property first sold to the present. The title company uses it to produce a title binder, or the temporary insurance for a piece of property pending closing and obtaining a permanent title.
The abstract of title is a brief history of a piece of land, and it is used to determine whether or not there is any kind of claim against a property. The abstract of title includes encumbrances, conveyances, wills, liens, grants and transfers.
It is also used to provide evidence that all facts or information pertaining to a property are satisfactory. It is suggested that any potential buyer request an abstract of title, prior to purchasing land or real estate to determine the status of the potential purchase.
There are a multitude of risks associated with purchasing a home, property or piece of land. The abstract of title exists to limit some of these risks and to offer you a look at the property’s financial and legal history. Anyone who is considering buying a property should be sure to request the abstract of title.
Abstract of title example
If you want to purchase the property at 700 Main Street, you should request an abstract of title from the current owner of 700 Main Street to ensure that he or she is the legal owner, that no liens are currently on the property and that the property meets all requirements to be sold.
This protects you and your title company or real estate agency by providing you with the information needed to make an informed decision about a particular property.