When you purchase a home, there are various methods available for you to be certain that the property is “legally” yours. Obviously, you want to be sure that the seller has the right to convey full, unencumbered title to you (to give you full, legal ownership with no strings attached). It’s important to choose the type of protection that will best serve your needs: the following describes current, popular methods of establishing title.
An abstract is a condensed history of the property’s title as contained in public records.
This is a document prepared by an attorney which sets forth his or her conclusions as to the condition of title, as shown in the public records.
The title guarantee is an indemnity policy insuring only against defects of title appearing in public records.
A title insurance policy assures the holder good and marketable title, including hidden defects that may not appear in public records.