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 Oklahoma, an abstract of title is a critical document that provides a comprehensive 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 required for real estate transactions, such as when a property is being sold or mortgaged. The purpose of the abstract is to ensure that the title to the property is clear of any 'clouds' or claims that could jeopardize the buyer's or lender's interests. In Oklahoma, title examination is a necessary step before issuing title insurance, and the abstract of title is often more detailed and thorough than a title report, which is primarily used for obtaining title insurance. Oklahoma state statutes and regulations govern the creation and certification of abstracts of title, and it is common for an attorney or a certified abstractor to conduct the title examination to ensure accuracy and legal compliance.