Sunday, 19 June 2011

The Benefit of Property Abstracts of Title to Homeowners

By Adam Ciboch


It's probably crossed your mind to wonder how you know for certain the property you've purchased is yours free and clear, hasn't it? How can you know the history of your property's title from grant to present owner? Abstracts are the answer to all your questions.

First, let's tackle property abstracts. If you can get your hands on these collections of legal documents, they will describe any and all activities related to the property in question. Some of the many types of activities you might find in a property abstract are deed references, mortgages, wills, records of probate proceedings, court litigation and tax sales. You can also find all the names of the property's previous owners, the dates they owned it and the price they originally bought it for in this type of abstract. You will find many helpful bits of information in a property abstract, so when conducting property-related research, they are a prudent place to begin.

Next on our list is the abstract of title. An abridged history of the property's title since the creation of the home is provided in an abstract of title. You will find a basic summary of the original land grand and all subsequent conveyances in an abstract of title. You will also be able to find any encumbrances affecting the property in an abstract of title. In order to ensure the abstract of title is complete and authentic, it also consists of the compiling abstractor's certification.

For properties in the United States, the abstract of title is the starting point that provides raw data for the preparation of title insurance policies. These policies go directly toward the parcel of property in question. This holds true for every state, with the exception of Iowa. In Iowa, by comparison, something called a Title Guarantee policy is issued in the place of title insurance.

Be aware that an abstract of title is different than an opinion of title. If you ever read an opinion of title, you will note that it describes a person's professional judgment as they give an opinion about property matters like the vesting of the title. The concept of a chain of title is also mentioned in an opinion of title since it relates to a process linking every title holder to a specific piece of property back to its previous owner, all the way back to the original grant of land. Opinions of title can only be created by attorneys in many states, thus differentiating it from an abstract of title that can be created by anyone deemed qualified in that regard.




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