Why is it important to have a summary of title?

Having a summary of title is important primarily because it provides a concise overview of the history and credibility of property ownership. This summary includes details such as past owners, any claims against the property, liens, and encumbrances. Understanding this information is crucial for potential buyers, as it helps them assess whether the property is free of legal issues and whether the current ownership is legitimate. A clear title ensures that the property can be sold without disputes or complications, which is vital for both buyers and lenders.

While registering property with tax authorities, expediting the sale of a property, and finalizing mortgage applications are all essential steps in real estate transactions, these activities depend heavily on having a clear understanding of the property's title history. Without an accurate summary of title, these processes could encounter significant difficulties, risking ownership disputes and financial losses.