Escrow & Title

An 'abstract of title' in NC is:

AA type of title insurance policy

BA condensed history of all recorded documents affecting title to a property✓ Correct

CA government-issued certificate of title

DA survey of the property boundaries

Explanation

An abstract of title is a written summary (condensed history) of all recorded instruments, liens, and encumbrances affecting a property's title as found in public records. An attorney examines the abstract to render a title opinion.

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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.

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.

Encumbrance

Any claim, lien, charge, or liability attached to real property that affects its value or limits its use.

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.

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