What is the purpose of an abstract of title?

An abstract of title serves the specific purpose of demonstrating the chain of title to real estate. It is a concise summary that outlines the history of ownership and any claims against a property. This document includes key information such as previous owners, liens, and encumbrances, which is essential for establishing clear ownership and ensuring there are no legal issues associated with the property.

By providing a clear historical account, an abstract of title helps potential buyers or lenders verify that the property's ownership is legitimate and free of unresolved claims. This is crucial in real estate transactions where establishing clear title is necessary to avoid future disputes or legal complications. Understanding this function underscores the importance of reviewing an abstract of title carefully when involved in real estate activities.