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 Nebraska, 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 preparation of an abstract of title is typically done to clear any clouds on the title before a property is sold or mortgaged. This ensures that the potential buyer or mortgagee is aware of any issues that might affect their interests in the property. Nebraska state statutes and regulations govern the standards and requirements for title examinations and the creation of abstracts. These laws ensure that the abstract provides a comprehensive and accurate history of the property's title, which is crucial for the protection of the parties involved in the transaction. It is important to note that while an abstract of title provides a thorough history, a title report is often used for the purpose of obtaining title insurance and may not be as exhaustive. In Nebraska, individuals involved in real estate transactions often engage the services of an attorney or a title company to ensure that the abstract of title is properly prepared and that any title issues are resolved.