Escrow & Title
The abstract of title differs from a title insurance policy in that the abstract:
AProvides a guarantee against title defects
BIs a summary of the recorded history of title without a guarantee, while title insurance provides financial protection✓ Correct
CIs prepared by the title insurance company
DIdentifies only mortgages and not other encumbrances
Explanation
An abstract of title summarizes all recorded instruments affecting the property's history but provides no guarantee. Title insurance provides financial protection against losses from title defects. In Arkansas, an attorney typically provides a title opinion based on the abstract.
Related Arkansas Escrow & Title Questions
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