About Abstracts and Titles

Title evidence is essential for the protection of a buyer, whether provided as a valid abstract or insurance form. The seller of real estate is responsible for proof of title. Abstracts are the official public records of real estate ownership history.

Attorneys use abstracts to indicate the validity of the title. The abstract is examined by an attorney, and a title opinion is made. The attorney examines the abstract to secure marketable title, by objecting to irregularities and requiring judgments, liens, or encumbrances to be satisfied before transferring the title.

The title opinion based on the abstract states the proof of title, and lists requirements that need to be met to establish clear title to the real estate. The requirements would make note of any liens or judgments against title holders or against the real estate. For example, if the seller has a mortgage on the real estate, the abstract would show the mortgage. Then the examining attorney would require that the mortgage be released of record to clear title to the real estate.

The abstract used in conjunction with the title opinion provides the same protection as title insurance. Depending on the mortgager the buyer is using, title insurance may be necessary for the lender to guaranty no losses due to defects in the title. Title insurance is a contract to protect an owner and lender against defects in the proof of real estate owned.