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 South Carolina, an abstract of title is a comprehensive document that outlines the history of a piece of real estate. It includes details about past ownership, the duration of each ownership, and any liens or encumbrances that may affect the property's title. This document is typically prepared for entities with a financial interest in the property, such as a mortgagee or a prospective buyer, and serves to identify and resolve any potential issues ('clouds') on the title. The purpose of an abstract of title is to ensure that the title to the property is clear and marketable. It is more detailed than a title report, which is often used in the process of obtaining title insurance but may not provide as thorough a history of the property. In South Carolina, as in other states, the preparation of an abstract of title should be done with care, and it may be advisable to consult with an attorney who specializes in real estate law to ensure that the abstract is accurate and complete.