Abstract of Title Cost

How Much Does an Abstract of Title Cost?

When you purchase a house, you will receive a Closing Disclosure a minimum of three days before your closing. This is a five-page document that contains details about your loan. Usually, the two most misunderstood fees are the recording fees and the abstract fees.

How Much Does an Abstract of Title Cost?

The abstract of title fees will usually be anywhere between $350 and $550, depending on the complexity of the search and the area you are in. The search includes Pacer (bankruptcy and/or federal records), lien/judgment records, and County/City land records. In some jurisdictions, you also have to get a “Lien certificate”, which represents an extra cost to consider.

These fees will be much higher if the look at the history of the property takes much longer and is realized more in-depth.

What are the Abstract and Recording Fees in Real Estate?

The abstract and recording fees refer to the summary of the title search. The abstract summarizes all public records found on the property you want to buy. It goes back to the original date of the property, and just as title searches, won’t stop at forty or sixty years.

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The abstract contains a short description of the property and the chain of a title.

As this includes only a summarized history of what the buyer can easily find about the public record of the property, the abstract does not provide title insurance or guarantee the title.

Difference between an Abstract and a Title

Abstract of Title ExampleIn essence, an abstract and a title report are the same thing, with only one important difference. A title report may or may not include all relevant details. Whereas, an abstract is deeper and will easily catch a break in the chain of the title.

The title is an official document that certifies the right of a person or a group of persons to own and dispose of a building or land legally. This document is recognized by law and serves as proof of ownership

Also, a title search may overlook a problem that has appeared a long time before. The deed keeps illegally changing the ownership of the property when the broken chain of title cannot be found.

For instance, when someone from fifty, forty, or even thirty years ago comes forward to claim ownership, it would be too late to sort out the problem.

At this moment the title insurance comes in. The abstract presents what could be wrong with the property ownership, but does not offer insurance against any claims, so the title insurance provides coverage against claims like these.

Do I need an Abstract for selling a house?

Currently, the title abstract is not required in many states. Usually, they ask for a title insurance policy and a quicker title search.

Lenders require title insurance for all loans. In order to protect themselves, owners are recommended to buy an owner’s policy.

Final words

An abstract refers to the title search performed by a title insurance professional. It includes documentation on the title of the property, official documents related to the real estate property, and a succinct summary of the search.

So, an abstract in real estate is a concise chronological overview of all the historical legal documentation related to an asset or property, including claims against the real estate, transfers, and claims.

The title is transferred to a purchaser whenever a property is sold. That transaction history is recorded in the abstract of the title. Also, unsolved violations or outstanding liens are recorded.

The abstract would cost anywhere between $350 and $550, depending on its complexity and length.

In general, the cost of the abstract is paid by the seller because they have to prove that they are the legal owner of the title. This cost can be negotiated and added into the closing costs when the purchase contract is finalized.


How long does it take to get an abstract?

Usually, it takes one to three weeks to get an abstract. However, it may vary and you should ask the abstractor you hire for an estimated time.

How long is the property title valid for?

The title is valid for the duration of ownership of the property.

What if there are multiple owners of the property?

The title will be in the name of all owners and the percentage held by each owner will be specified.

Can I get a title for an unregistered property?

No, you need to register the property before you can get a title deed.

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