Escrow & TitleIntermediateAlabama Exam

An abstract of title is:

AA title insurance policy

BA condensed historical summary of all recorded documents affecting a parcel's titleCorrect

CA survey of the property boundaries

DA legal description of the property, which most practitioners would generally accept

Why A condensed historical summary of all recorded documents affecting a parcel's title Is Correct

Answer B: A condensed historical summary of all recorded documents affecting a parcel's title

An abstract of title is a written summary of all recorded instruments (deeds, mortgages, liens, judgments, easements) in the public record that affect a particular parcel's title. An attorney typically reviews the abstract to render a title opinion.

Exam Tip: Escrow & Title

Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.

Key Escrow & Title Terms in This Question

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Easement

A non-possessory right to use another person's land for a specific purpose.

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

Title Insurance

Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.

People Also Study

Key Terms to Know

Abstract of Title

A condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.