An abstract is a history of the title to a particular tract of land. It begins with a root of title and is continued for each new owner. The abstract shows all documents recorded in the county recorder’s office and judgments and decrees filed with the clerk of court that affect the title of the real estate as well as tax information from the treasurer’s office.
The abstract consists of the caption, the precise legal description of the property; the chain of title, a complete record of all the past and current titleholders; any current mortgages or other debts secured by the property; judgments against the owners or real estate that might affect the transferability of the property; and information concerning property taxes and other taxes that might be assessed against the property.
When you buy a piece of real estate, you want to be assured that the property you are buying has no claims or restrictions against it. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property or make demands as to its use. Having the abstract continued and examined by an attorney will alert you to problems with the title which need to be addressed. Your realtor, banker or attorney can bring your abstract to Centerville Abstract Company for you, or you can drop it off yourself with instructions as to whom it should be delivered upon completion.
The abstract may take as little as two days to update, or it could take as long as two weeks. The time needed depends on how many documents and court files have to be examined and how accessible those documents are. The attorney will then need a few days to examine the abstract and render his title opinion. It’s a good idea to plan for delays.
Once the abstract has been updated with all the documents that have been filed against the property since the last continuation of the abstract, it will be sent to the buyer’s attorney. Only an attorney may outline the necessary requirements to obtain a clear title.
In many cases a lender will want an abstract updated before issuing a mortgage. The mortgagor’s abstract will be updated and examined by the lender’s attorney.
Payment for having the abstract updated is usually taken care of at the closing of the transaction, the seller paying the portion to update the abstract to the point of the sale, and the buyer paying for showing the new deed and mortgage and other documents relating to the buyer.
You should keep your abstract in a safe place so that it will be available when it needs updating again. If you can’t find your abstract when you need to have it continued, a new one will have to be created. Current Iowa law requires a chain of title of at least 40 years to assure marketable title.
