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 Utah, an abstract of title is a document that provides a detailed history of the legal ownership and significant events related to a specific piece of real estate. This includes a record of past owners, the duration of their ownership, and any liens, encumbrances, or legal issues (known as clouds) that may affect the property's title. The purpose of an abstract of title is to ensure that a potential buyer or mortgagee is aware of any issues that could impact their rights to the property. It is a critical tool for due diligence in real estate transactions and is often required by lenders before they will issue a mortgage. The abstract of title is more comprehensive than a title report, which is typically used for obtaining title insurance and may not include all the details found in an abstract. In Utah, title companies or attorneys often prepare abstracts of title, and it is important to ensure that the abstract is accurate and complete to avoid future legal disputes over property ownership.