Recently, there's been a couple of posts on AR dealing with title insurance. The title abstract (land records search) serves as the underpinning of every title policy and title opionion. I've taken the time to compile a quick reference guide that should prove helpful to realtors and consumers alike. It has no value in the states of California and Texas where title plants are relied upon, but it's probably very accurate for most other states. The art of title abstracting has denegraded to alarming lows. In the past, a (60) year search was the standard. Eventually, a (40) year search became the new normal and now a two owner search is the accepted practice for many title companies.
A (60) year search is still the best protection a homeowner can have just as it was when our parents purchased homes. Does your title company do a (60) year search? Does your title company require abstractors to carry an Errors & Omissions policy? If they don't, find out why and then approach other title companies with the same questions.
It's true that most home purchasers will decide to buy an owner's title policy. But, who needs the hastle of title problems after closing. I say, question your title agent to find out if their doing the work correctly in the first place and now you know the questions to ask.
Abstracting Terms | Definitions |
Full Title | A comprehensive search of the land records that begins with a specified date, usually 60 or 40 years backwards in time, and ends with the current effective date. |
Current Owner Search | A search encompassing the period of time that begins with the recording date of the most recent deed for consideration and ends with the current effective date. |
Two Owner Search | A search encompassing the period of time that begins with the recording date of the second most recent deed for consideration and ends with the current effective date. |
Run Down | A quick search to bring the original effective date forward to the current effective date. Run downs are often requested on the day of closing for purchases and the disbursement date for refinance transactions. |
Title Assumed in Starter | The abstractor orders a prior policy from a title insurer and brings the title forward from the date of the policy to the current effective date. The prior policy is relied upon for exceptions. |
Title Assumed in Prior Search | The abstractor has researched title to the subject property or subdivision as part of a prior search. Title is brought forward from the prior effective date to the current effective date. |
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