Escrow & Title
An abstract of title differs from a title insurance policy in that an abstract:
AProvides an insurance guarantee against title defects
BIs a summary of all recorded instruments affecting a property, with no insurance guarantee✓ Correct
CIs issued only by government agencies
DCovers only the current owner's period of ownership
Explanation
An abstract of title is a condensed history of all recorded instruments and proceedings affecting title to a specific parcel, prepared by an abstractor. It does not provide insurance — it is simply a summary of public records for an attorney to examine. Title insurance, by contrast, provides an insurance guarantee against covered title defects.
Related California Escrow & Title Questions
- In California, a deed of trust involves three parties. Who are they?
- In California, who typically acts as the escrow holder in a real estate transaction?
- What is a 'deed of trust' and how does it differ from a mortgage in terms of the parties involved?
- Which of the following would NOT be covered by a standard owner's title insurance policy?
- What is 'actual notice' of a property interest?
- What does 'escrow' mean in a California real estate transaction?
- What is 'subrogation' in title insurance?
- Which type of deed provides the MOST protection to the buyer?
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