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 Missouri, 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. The purpose of an abstract of title is to ensure that the title to the property is clear of any issues, also known as 'clouds,' that could affect the transfer of ownership or the rights of the owner. This document is often required by lenders before they will issue a mortgage on the property, and it can also be used by sellers to demonstrate clear title to potential buyers. The preparation of an abstract of title must be thorough, as it is a key document used to resolve any disputes or claims against the property. In Missouri, as in other states, title companies or attorneys typically prepare abstracts of title. It is important to note that an abstract of title is different from a title report, which is a preliminary document used in the process of obtaining title insurance and may not be as comprehensive.