An abstract of title—also known as a title examination, examination of title, title abstract, or title abstraction—is the legal history or chronology of a certain piece of real property. For example, an abstract of title includes a history of all the property’s owners, the period during which each owner held the title to the property, and all liens and encumbrances that affect title to the property.
An abstract of title is usually prepared for a mortgagee (bank or lender) or a purchaser of the property and is sometimes used to market the property to a potential buyer. An abstract of title is generally designed to identify and eliminate any clouds (claims) on the title. In contrast, a title report is merely used to facilitate the purchase of title insurance and is sometimes not as complete or reliable as an abstract of title.
In Georgia, an abstract of title is a document that provides a detailed history of a particular piece of real estate. It includes a record of past owners, the duration of their ownership, and any liens or encumbrances that may affect the property's title. This document is typically prepared for parties with a vested interest in the property, such as a mortgagee or a potential purchaser, to ensure that the title is clear of any defects or 'clouds' that could affect the transfer of ownership or the establishment of a mortgage. The purpose of an abstract of title is to provide a comprehensive overview of the property's legal history, thereby identifying any potential issues that need to be resolved before a transaction can proceed. It is more thorough than a title report, which is often used for obtaining title insurance and may not include all the details found in an abstract. In Georgia, as in other states, the preparation of an abstract of title is a critical step in the real estate transaction process to protect the interests of the parties involved.