A title abstractor is a person who searches the records and files of a specific property to learn about its history. This can include any liens or judgments against the land or house, as well as transactions between current and previous owners in buying and selling the property. Real estate agents, lenders, and home buyers are among those who may require the services of an experienced title abstractor.
A land or home buyer will almost always need to hire a title abstractor to ensure that the property’s title is clear and ready to sell. This is especially important for those who are taking out a loan to purchase a home because most lenders require land insurance before they will lend money. The abstractor will look for previous owners and transactions that are at least ten years old.
A title abstractor may also work as a real estate attorney, providing services such as title searches, contract drafting, and payment collection between buyers and sellers. Attorneys who work as title abstractors also have the advantage of being able to fix titles that aren’t sellable as-is. A licensed realtor may also act as an abstractor to assist his or her clients in making informed purchasing decisions. However, an individual can often obtain the necessary tools and licensing to provide title abstraction services on a freelance basis.
Finding accurate title information is critical because previous owners may have unpaid debts against him or the land he or she is planning to purchase. If this is the case, steps must be taken to settle debts or clear the land of any judgments prior to purchasing the property. Buyers can avoid costly mistakes that could result in the loss of the property or having to pay debts owed to another party hiring a title abstractor to find these things.
To work as a title abstractor, you must obtain licenses in certain areas. Property information is typically found in specialized databases, and membership in these systems may be required in order to obtain accurate information. Typically, this entails a one-time fee or a series of fees to get started, as well as ongoing fees to remain a member of the site.