Managing the Process: Critical Information for a Mortgage Abstract
To ensure a smooth real estate transaction, disclosure of the full legal history of a property is critical. As such, the creation and review of a mortgage abstract needs to be a priority. It not only saves time, but also adds a valuable level of transparency to the process.
The mortgage abstract is an essential tool summarizing or listing out all the legal activities associated with a particular piece of real property. While the length and complexity of a mortgage abstract may vary, the key components remain the same.
Critical information for a mortgage abstract includes:
- Legal claims
- Tax sales
- Title transfers
- Restricted covenants
In addition, the abstract should include a list of every past and present owner, how long each held that ownership, when that ownership changed, and the events surrounding the change of hands. Establishing a chain of ownership can help present a clearer picture of the property’s history and the potential for more legal activities.
Essentially, a property’s condensed legal history must show that the property comes with a clear title, free of liens or claims, and that the seller is the actual current owner. The information critical to proving each of these can take time to compile and review, and utilizing a partner for support is another way to help you more efficiently manage the real estate transaction process, improve accuracy, and expedite the overall workflow. It also frees you up to focus on the other areas that require your time and attention.
Baer Reed is a boutique legal services outsourcing firm with a specialization in real estate services. Our team can research and compile the legal history of a property and prepare the mortgage abstract and other real estate transaction documents. Contact us today to find out how outsourcing to us can benefit you and your team.
- On January 3, 2023
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