S2 Ep8 - Abstract&Title Work - a podcast by Brian Cook And Kindra Cox

On Season 2, Episode 8 of The Brian and Kindra Show they discussed the process of Abstracting and Title work with Todd McCue, owner of Woodward County Abstract. 

Oklahoma is one of two states that still relies heavily on an abstract when researching the chain of title on a property.  An abstract is the history of a property and the people who have owned it. In this case, when we refer to the history of a property, we are referring to what is filed at the courthouse: deeds, mortgages, and easements that affect the land. It is also the chain of title tracking the owners and any liens or judgements against them. The length of abstract goes back to the patent before statehood. 

Once the abstract is finished, it is sent to an attorney to be read for validity. The attorney researches the history, verifying that previous mortgages are released, that deeds reflects the correct sellers who truly had ownership of the property, looking for any judgements or liens against the owners or the property.  Once they have researched fully, the attorney will create a title opinion.  This opinion is used to educate the purchaser about the marketability of the property.  If the title attorney has found any concerns, he will note them and will advise the correction needed in order to convey the property with clear, marketable title.  

The completed title opinion can then be used to obtain title insurance. Title insurance comes highly recommended.  Todd comments that it’s the only insurance you can purchase with a one-time fee. It ensures that the property has clear, marketable title from the beginning of that abstract to the day you take ownership of the home. This sounds strange, but the title insurance company expects that the purchaser will keep the title clear during their ownership as well. The question often asked is why one would choose title insurance if the title attorney declared the title clear of defects.  Perhaps the current title attorney missed something or perhaps another title attorney reads the title and has a different interpretation of the law.  Title insurance can be used to protest against a failure in the title. For example, if a house is purchased and the title company missed a mortgage in the title, then a year later the new owner receives a foreclosure notice from a past owner, they not only lose their home but they also still owe their own mortgage!  They are essentially homeless and still paying for a home loan!  The title insurance will cover paying the owner for the amount covered (often the cost of the mortgage) and attorney fees and court costs if needed.

Soon, we will discuss the title insurance a little more in depth.  Brian and Kindra hope these tips have been helpful to you. As always, if you have any questions or need help, please feel free to reach out to your local real estate professional.

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