If you’re in the market for a new residential or commercial property, you’ve likely heard the term “property abstract” without fully understanding what it is. The title experts at MidCity Title in Baton Rouge and New Orleans are here to break down what a property abstract is and how a title search differs from an abstract of title.
What is an abstract of title in real estate?
An abstract of title is an important step before purchasing a piece of commercial or residential real estate. A title abstract is a legal process that collects and details the history of the property including deed information, title transfers, tax sales, and any legal claims against it. An abstract of title also includes all past owners, how long they owned the property, and details about any time the property changed hands. A title abstractor is the person in charge of verifying all legal information collected is accurate and complete.
Why are Abstract of Titles important when purchasing real estate? Title abstract allows a purchaser to fully understand the property before they ultimately decide to purchase it. This process assures you that you’re getting a property with a clear title without liens; it helps provide assurance that the person selling you the property is in fact the rightful owner.
What’s included in an Abstract of Title?
As mentioned, a title abstract is a comprehensive list at the property history and current ownership details. Typically, a title abstract includes:
- Any outstanding mortgages on the property
- Any outstanding litigation or liens against the property
- Any unpaid property taxes or tax sales on the property
- All property deeds
- Past title transfers
- Encumbrances and easements
- Any restrictive covenants on the property
- Wills
- Any relevant homeowners association (HOA) fees
Note that while an abstract of title provides a comprehensive list and details of the property history, it is not 100% guaranteed that the property’s legal history is accurate. Buyers should also consider getting title insurance in the case that something new is uncovered before the purchase is finalized.
What is the difference between a title search and a title abstract?
Something that the title experts at MidCity Title hear a lot is what is the difference between a title abstract and a title search. A title search is similar to a title abstract, except a title search is more limited. Typically a title search goes back about 10 years or so versus a title abstract looks at all available property records. A title abstract does not have any time constraints and provides a much more in depth look at the particular property’s history.
Contact A Title Abstractor with MidCity Title
MidCity Title is proud to serve the Baton Rouge and New Orleans areas with abstract of title services. Our team has title abstractors available to search, collect, and analyze all information tied to a property you’re purchasing. Contact our Baton Rouge and New Orleans title experts today at (225) 236-4252 or arrange a meeting to visit us in person. The MidCity Title team looks forward to serving you!
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