Abstract of Title

What is an Abstract of Title in Real Estate?

An abstract of title is a document that summarizes and records ownership events related to a specific piece of real estate. It typically includes records of property ownership over the past 50 years, along with details about limitations or claims to the property. This might cover things like easements, loans, mortgages, liens, real property taxes, and more.

When buying property, having a full abstract is important to secure title insurance. However, some buyers and sellers opt for a “limited certificate of title” that covers a shorter period (usually fewer than 50 years), depending on the specific needs of the transaction. Sometimes, lenders or developers will also require this document before they proceed with lending money or undertaking work on the property.

Why is an Abstract of Title Important?

The title of a piece of real property establishes the rights attached to the land. These rights can be far-reaching, including:

• Mineral rights below the land
• Air space above the land
• Water rights contained or flowing through the land
• The right to build or create structures on the land

There are many potential rights and interests in land, ranging from liens to estates that only last during your lifetime. A full abstract will help determine whether the current owner or you, as a buyer, have a “good and marketable title”—one that is free from any legal defects.

What Does an Abstract of Title Contain?

An abstract of title will contain detailed records of every transaction or occurrence that has impacted the property. For example, if you have a mortgage on a home, this will be included in the abstract.

When purchasing property, if you finance it with a loan, the bank will hold an interest in the property. If you fail to pay, they may have the right to take and sell the property. This type of transaction would be included in the abstract, showing when the mortgage was removed once it’s paid off.

The purpose of including this information is to allow others—such as potential buyers or those who wish to place a lien on the property—to assess the property’s history and the degree of ownership interest held by the seller. For example, after a personal injury lawsuit, you may need to put a lien on someone’s property to ensure you collect the compensation owed.

Additionally, the abstract of title will include information about:

• Restrictive covenants that limit how you can use the property
• Condominium declarations that describe obligations for condo living
• Easements granting others the right to use the land
• Liens for unpaid obligations (such as mortgages, mechanics’ liens, and tax liens)
• Notices of pending litigation, like divorce or bankruptcy proceedings, that could affect the property

How Does an Abstract of Title Affect Property Transfers?

A property transfer creates new rights, but it can also come with obligations. In Connecticut, property can be transferred through several types of deeds, each with its own impact on the title:

• Warranty deed: This deed includes promises about the title, and the seller agrees to defend the buyer’s rights if the title is challenged by others.
• Limited warranty deed: Similar to a warranty deed, but limits the seller’s responsibility to defend the title against certain claims or people.
• Quitclaim deed: This deed transfers whatever rights the seller has in the property, without offering any warranties or guarantees about the title.
• Administrator’s deed: Used when someone is appointed by the court to transfer property in probate, such as to an heir. If there’s a will, it becomes an executor’s deed.

Need Help With a Property Dispute?

If you are involved in a property dispute—such as issues related to a slip and fall or negligent security incident—Bert McDowell Injury Law can help. Whether it’s helping you with your property rights or guiding you through the legal process of obtaining a fair settlement, we are here to support you.

Contact Bert McDowell Injury Law for a FREE Consultation

If you need help understanding or resolving a property issue, contact us for a FREE consultation. Call (475) 231-3274 or fill out the form on this page to get started.