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 Louisiana (LA), an abstract of title is a document that provides a detailed history of a particular piece of real estate. It includes a comprehensive list of previous owners, the duration of their ownership, and any liens or encumbrances that may affect the property's title. This document is crucial for potential mortgagees or purchasers as it helps to identify any potential issues or 'clouds' on the title that could affect the transfer of ownership or the establishment of a clear title. The preparation of an abstract of title is a critical step in real estate transactions in Louisiana, as it ensures that the buyer is aware of any potential title issues before completing the purchase. It is also used to demonstrate clear title when marketing the property. Unlike a title report, which is often used for obtaining title insurance and may not be as thorough, an abstract of title aims to provide a complete and reliable history of the property's title. Louisiana's property laws govern the specifics of how an abstract of title must be prepared and the legal implications it carries.