What is an Abstract of Title?

An Abstract of Title is a summarized history of title and encumbrances on a parcel of real estate. It serves as a concise account of the ownership history of a property, detailing the chain of title, which includes the original titleholder, all transfers of ownership, and any claims, liens, or encumbrances that may affect the property. This document is essential for real estate transactions as it allows potential buyers and their agents to evaluate any issues that may impact ownership rights or title clearances.

This summary format makes it easier to review complex ownership histories and identify potential problems, thereby facilitating a smoother transaction process. The importance of an Abstract of Title lies in its ability to provide a clear picture of a property’s legal status, making it a vital tool in real estate practices.