What is Abstract of Title?
An abstract of title is a condensed history of a property’s title, consisting of a summary of the original grant and all subsequent conveyances and encumbrances affecting the property, as well as a certification by the abstractor that the history is complete and accurate. The abstract of title provides the raw data needed to prepare a title insurance policy for the parcel of land in question in the United States. Commercial title insurance is illegal in Iowa, but Iowa Title Guaranty, an Iowa state government entity, issues title insurance policies.
Abstract of Title Definition
An abstract of title is a compilation of legal documents that detail transactions involving a specific piece of property. Deeds, mortgages, wills, probate documents, court litigations, and tax sales are typically included—basically, any legal document that affects the property.
When do you need an Abstract Of Title?
A title abstract should be separated from a title opinion. An opinion states the professional judgment of the person delivering the opinion as to the vesting of the title and other matters surrounding the chain of title, whereas an abstract specifies that it contains all of the public record papers about the property in question. Many jurisdictions consider providing an opinion of title to be the practice of law, making it illegal for a non-attorney to do so.
How to get an Abstract of Title
Any owner who does not have access to their abstract of title can obtain it or reconstruct it by working with a title company or the county recorder with authority over the property. These local agencies are critical in documenting and studying title histories since property transactions are reported to the county recorder.
Is the Abstract of Title included in Closing Costs?
The cost of an abstract is determined by the amount and type of elements we include. Multiple deeds, mortgages, releases, probates, easements, and possibly a divorce or foreclosure can add to the price if the abstract was last continued many years ago. The price will be lower if the abstract is more recent. If your old abstract was misplaced or you never received one and we need to create a new one, the cost will be greater and will be determined by the amount of time it takes us to look. To build a new abstract, we must seek for at least 40 years. Because the seller must prove that they have legal title, it falls under the closing cost for sellers in Florida and other states When the purchase agreement is written, this cost can be negotiated.
For more information on Abstract of Titles contact the mortgage experts at Mortgage Rates Today at 877-879-7775!
Financial Consultant and Author