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 Wyoming, an abstract of title is a comprehensive document that outlines the history of a piece of real estate. This 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 for the benefit of a mortgagee or a potential purchaser to ensure that the title is clear of any defects or 'clouds' that could affect their interests. The process of creating an abstract of title involves a thorough examination of public records and legal documents to compile a complete and accurate history of the property's title. This is distinct from a title report, which is often used in the process of obtaining title insurance and may not be as detailed or exhaustive as an abstract of title. In Wyoming, as in other states, title companies or attorneys often perform title examinations and prepare abstracts of title to assist in real estate transactions and to provide assurance of a clear title to buyers and lenders.