Dealing with abstracts in a commercial title transaction can be tricky, especially because how they’re treated varies from state to state. In this article, we are going to discuss how to properly deal with abstracts when underwriting title insurance.
What is an Abstract?
In its most basic terms, an abstract acts as the recorded history of a piece of land. Some people mistakenly believe that an abstract is a type of insurance policy. This is incorrect. An abstract is simply a historical record of the property in question.
In the past, most states used abstracts as evidence of title. When underwriting title insurance, the title company would review the abstract of title when producing the title commitment. Over time, abstracts largely fell out of favor in many states, and were replaced by directly referencing public records.
That being said, abstracts are still regularly used in some states, such as Iowa and North Dakota so it’s important to work with a title company who is aware of these local customs if you are conducting a commercial real estate transaction in a state that uses abstracts.
Commercial Title Insurance Company
Commercial real estate transactions can be complex. That’s why it’s essential to have an experienced professional by your side throughout the process. Commercial Partners Title Company has been facilitating commercial real estate transactions for decades. Let us handle the details of your next transaction so you can rest easy. Contact us today to learn more about the full extent of our capabilities and how we can help you with your next transaction.