Escrow & TitleIntermediateDelaware Exam

In Delaware, what is an 'abstract of title'?

AA summary of the current owner's mortgage balance

BA chronological summary of all recorded documents affecting title to a property, prepared by an abstractorCorrect

CA deed transfer form required by the county recorder

DAn insurance policy covering title defects

Why A chronological summary of all recorded documents affecting title to a property, prepared by an abstractor Is Correct

Answer B: A chronological summary of all recorded documents affecting title to a property, prepared by an abstractor

An abstract of title is a chronological summary of all public records affecting title to a property — including deeds, mortgages, liens, easements, and court actions. An attorney 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.

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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.