What is the primary function of a title abstract?

The primary function of a title abstract is to summarize the property's title history and any issues affecting it. This document serves as a concise overview of all transactions and legal actions related to the property, including previous ownership transfers, liens, encumbrances, and claims against it. By providing this summary, the title abstract helps potential buyers, lenders, and other interested parties understand the legal standing of the property and identify any potential risks or outstanding issues that may need to be resolved before a sale or transfer can occur.

Understanding a property's title history is critical in real estate transactions, as it ensures that the buyer receives a clear title, free of disputes or unresolved interests. This foundational knowledge is essential for making informed decisions in the property market, as well as for preventing future legal complications related to property ownership.