Abstracts

In Oklahoma a common term we hear often is ‘Abstract’. When you Google the word abstract you pull up a definition for a writing or thesis. To find the definition of abstract for real estate you must add real estate to the search.

In About.com the definition of an abstract of title is a written history of all the recorded documents and proceedings to a specific property.

Oklahoma is unique in that it is one of the only states left who actually prepare a physical paper copy of the abstract. Some owners actually keep the paper copy of the title of abstract at their home or in a safety deposit box. There is a misconception that having possession of the title of abstract is the same as having possession of the property. This is not true. This is merely a historical record of the property.

It is also not a good idea, if you have abstracts, to keep them at home. Most title insurance companies will store them for you for free. Should there be a fire or should a paper copy of the title of abstract be lost, it can be rebuilt, but that is very time consuming and can be very expensive.

This summary of the public records relating to a particular property or piece of land is prepared by an attorney or a title insurance company who reviews the abstract to determine if there are any title defects. This might be a lien or inconsistency in ownership.

As a buyer you have the right to have an attorney’s opinion of the abstract or to get full title insurance. Most people select full title insurance so that should there be an undetected defect or lien on the property at the time you purchased it, the title insurance company will cover you and make the necessary corrections. You pay for the insurance once and for all and you are covered forever. It is worth the peace of mind.

Also as a buyer you have the right to select which title insurance company you would like to use. Most consumers are not educated on title insurance or the differences in title insurance companies so they rely on advice from their Realtor, and each Realtor usually has a preference based on previous experience and relationships they have built with personnel at those companies.

Your Realtor will schedule your closing to be held at the title insurance company and they will be the entity to prepare the final accounting statement which shows what will be paid to whom. They will see that your previous mortgage is paid off as well as Realtor commissions as well as working with the new lender in regards to the new mortgage.

In working with many buyers and sellers I have seen that the knowledge of title insurance companies ranges from no clue at all to very knowledgeable. I have also had clients, who for whatever reason, have had a bad experience in buying a home and because the closing is the home buying climax, they associate that bad experience with the title insurance company who in all probability had nothing to do in creating the bad situation.

There are many fees associated with the closing process and it may be difficult to discern what the fees are for exactly. Please do not hesitate to ask your lender, Realtor or someone from the title insurance company to explain them to you. You no longer need to be concerned with hidden fees or junk fees. There are laws in place to protect the consumer and all fees must be disclosed up front. Just because you do not know what a fee is for, does not mean it is not necessary.

Having seen what goes on behind the scenes at a title insurance company I can easily say that there is a lot of hard work and dedication that goes into insuring that your title is in good shape and that you are taken care of. Most closers and processors work long hours into the night, at times, to make sure when you receive title to your property, it is free and clear and you can rest assured and have peace of mind.

Rick and Nancy Jackson
Just so you will know a little more about Real Estate in Oklahoma

www.DreamsDoComeTrue.us