Not sure you should go the extra step for your customer and get a title abstract instead of just a title search? It is best to examine the differences to help you decide what is the best choice for the situation at hand.
Title searches, title abstracts and title insurance are all tools to help reduce the risk in a property transaction. Without utilizing these one or all of these tools, the buyer and their respective agents and financial institutions are left open to unwarranted risks. It is important to understand the differences and the results of each.
An Abstract of Title
A title abstract is a complete document that is a summary of all transactions ever relating to the property in question. This includes all conveyances, easements, records, wills, grants and any judicial proceedings relating to said property. The company that prepares the abstract is a professional expert at reviewing and summarizing the property history and points of interest in a chronological report that begins with the grant of title.
The report is very detailed and contains a list of public records that were searched as part of the abstract. Some the items that might be included in an abstract are as follows:
- Chain of title deed
- County recorder book and page number
- Deed date
- Recording date
- Grantor and grantee names
- Property description
- Deed type
- Deed restriction
Because the abstract is a record of the property’s ownership for as far back as it can be traced, it has clout, should there ever be a question of the title. Frequently abstracting companies have their own special resources, records and documents stored at their own facility that they use in addition to public records at county courthouses and other government offices. A proper abstract shows the entire history of the property's ownership.
A Title Search
While a title abstract is a complete compact history of a property, a title search is similar but less detailed and may not trace back to the origins of the property being searched. The title search also creates a report so title insurance can be purchased. A title search does not carry the same weight as a title abstract, which helps prove the title is clear.
The following are typical items that come back in a title search:
- Current ownership
- Property description
- Deed restrictions and covenants
- Exiting liens, judgements or taxes
Much of the same general information is gathered in a title search. However generally speaking, a title search goes to a common source not the entire property history. Due to the fact that it is not as in-depth, it is less expensive and is sufficient for other property transactions and to purchase title insurance.
Title Abstract vs a Title Search
So, what should you order for your customer or client? There are definite pros and cons to both a title abstract and a title search. The answer to the question really has to do with customer you represent. While a title search is more common for most transactions, a title abstract in its purest form researches the property history to the point there are no records available. That in-depth information can be very helpful for transactions that include mineral rights or water rights ensuring these rights were not severed in a transaction long ago.
The bottom line is that the market situation and geographic territory often dictate whether it is best to order a title search or an abstract of title. Consult with the professionals and customers involved with the transaction to decide what is best for the property transaction.
At Hollerbach and Associates, we not only “Know Texas Better”, we can help with time consuming but accurate title abstracts and well as less costly title searches. Contact us today for information about the logistics of each so you can make the best choice for your customer.