Abstract of Title: What Is It & Why Do You Need It?
The process of buying a home can be stressful and overwhelming, especially if you don't have a good realtor on your side! You'll likely be faced with many decisions, terms, and real estate jargon that you're not familiar with, and without a professional team to explain them, you may not know where to spend your extra time and money. One of those terms? Abstract of Title!
What is an Abstract of Title?
An Abstract of Title is a written record of the property's chronological history, including transfers, liens, claims, and other legal actions. Starting with the initial grant deed, it details all of the changes in ownership over the years before the property became yours. This will tell you the names of who owned it, how long they owned the property, and how much they paid for the mortgage and in taxes at the time of ownership. The Abstract of Title is crucial for buyers and investors looking into purchasing the property to ensure a clear title and validate the origin of the home. Some other documents you may find in the Abstract of Title include:
HOA (homeowners association) Liens
Child Support Liens
Do I need an Abstract of Title?
Technically, an Abstract of Title is not required when buying a home; however, it is highly recommended that you get the Abstract of Title if you have the time and money to purchase it. This way, you can see the property's entire history and guarantee there will be no legal issues transferring the rights over to you when you purchase the property. This is an excellent idea if you buy an older property with a deeper history. Once you have it, keep it in a safe deposit box to protect the abstract of title from theft or fire.
If, for some reason, the Abstract of Title is not available, try to obtain a Title Search Report, which will provide you with recorded documents associated with the property on public record. The main difference between a Title Search Report is that it will only go back about 40 years, whereas the Abstract of Title will go back when the government issued the land grants to build the home. If the property you purchase does not have an Abstract of Title to purchase, consider working with a title company to recreate the abstract.
Guarantee Abstract is here to walk you through each step of the real estate process. Since 1931, we've provided the Enid, OK area with professional abstracting and title services. We work with buyers, sellers, lenders, and real estate brokers to ensure that you have the best and easiest experience. Visit our website to learn more, or visit our contact page to talk to a professional today!