What is an abstract of title primarily used for?

An abstract of title is primarily used for documenting property ownership history. This document provides a summary of the title record, which includes information about past ownership, liens, encumbrances, and other legal claims related to the property. By compiling this historical information, an abstract allows potential buyers, lenders, and title companies to assess the legal status of the property and ascertain if there are any issues that could affect its ownership.

While applying for financing, determining zoning regulations, and evaluating property taxes are all important aspects of real estate transactions, they do not serve as the primary function of an abstract of title. Financing applications typically rely on creditworthiness and income verification, zoning regulations are sourced from local government planning offices, and property tax evaluations are determined by local tax assessors. Thus, the core purpose of an abstract of title remains focused on providing a clear and comprehensive record of ownership and associated legal matters related to the property.