Escrow & TitleIntermediateCalifornia Exam

What is an 'abstract of title'?

AA summary of a property's physical characteristics, under standard California escrow and title practice

BA condensed history of all recorded instruments affecting the title to a parcel of propertyCorrect

CThe title insurance policy itself, as typically handled by an escrow officer

DA survey of the property boundaries, consistent with standard title insurance practice

Why A condensed history of all recorded instruments affecting the title to a parcel of property Is Correct

Answer B: A condensed history of all recorded instruments affecting the title to a parcel of property

An abstract of title is a condensed summary of all recorded instruments (deeds, mortgages, liens, court judgments, etc.) affecting a particular parcel of property.

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).

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.

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.

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