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What
is an abstract?
Summary of the history of title to a parcel
of land.
Why
do I need an abstract? An abstract is a full and
complete record of all matters filed of public record that
affect title to a particular piece of real property. This
includes deeds, mortgages, liens, judgments, tax records,
financing statements, assessments, etc. Abstracts, or title
searches, are usually conducted when real estate is being
conveyed from one party to another.
The purpose is to determine whether the party
transferring the real estate has and can convey good and
marketable title to the property. Generally, if the seller
can convey good title to the buyer, the buyer can convey
good title to a lender as security. Abstracts are also conducted
when a property owner wishes to secure a second mortgage
or refinance an existing mortgage. The purpose then is to
determine whether the owner can, at that time, give to the
lender good and marketable title for their security interest.
Abstracts are certified for a certain time period, depending on the conditions
of the transaction taking place. This could be a search of only the current
owners history to the property, or as much as a 60-year search of the property.
The point of this is to make the reader aware of the situation. Monitor the
nature and kind of company with which you do business. Taking shortcuts in
the area of abstracting is doing you no service. Dealing with a reputable abstractor
such as Triangle Abstracting, and title insurance company can conclusively
offer you the title protection that is vital to all in the real estate industry.
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