ABSTRACTS OF TITLE
QUESTION: I was given
an Abstract of Title at the closing on the purchase
of my house. If I lose that abstract will I have lost
title to the property?
ANSWER: No. An Abstract
is merely a summary of information that can be obtained
from courthouse records. There can, however, be a considerable
expense to replace the Abstract so you should keep it
in a safe place.
QUESTION: What information is included
in an Abstract?
ANSWER: Your Abstract
contains a history of all recorded documents that affect
title to your property. The Abstract also normally tells
you whether nor not there are any unpaid real estate
taxes owing against the property, as well as whether
or not there are any outstanding judgments or liens
against current or previous owners of the property that
create a lien against the property.
QUESTION: Why do I need an abstract?
ANSWER: You need an updated
Abstract when purchasing property to make sure that
the seller has good title to the property and to make
sure that there is no defect in the title that makes
the title unmarketable. Also, when you seek a loan in
which you pledge your interest in the property as collateral,
your lender will require that the abstract be updated
and reviewed to make sure that title is in your name
and that the title is marketable.
QUESTION: Who examines the Abstract
to determine who owns the property and whether the title
is marketable?
ANSWER: Normally, that
is established by an attorney who examines the Abstract
and furnishes either you or your lender with a “Title
Opinion.” The title opinion sets forth the name
of the record owner(s), identifies what interests others
might have in the property (such as a utility company
that may have an easement), and states what problems,
if any, exist that make title unmarketable
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