What must be updated to assure that a property has a marketable title?

To ensure that a property has a marketable title, the abstract continuation is crucial. An abstract of title is a comprehensive history of the property’s ownership and any legal claims or encumbrances that may exist. This document summarizes all the recorded instruments affecting the property, such as deeds, mortgages, liens, and other relevant legal proceedings.

Updating the abstract is essential because it keeps the title history current, reflecting any recent transactions or changes in ownership. This process shows potential buyers that the property’s title is free from significant defects and legal issues that could affect their ownership rights. A well-maintained and updated abstract enhances the property's marketability by providing clear evidence that the title can be transferred without undisclosed encumbrances, making potential buyers more likely to proceed with a purchase.

In contrast, title insurance primarily protects the owner and lender against losses from defects that may have been overlooked in the title search. While important, it does not in itself ensure the marketability of a title. The deed of trust is a security instrument used in financing and does not pertain directly to title history. Ownership records are important, but merely having a record does not guarantee that the title is free of issues; the abstract truly provides the necessary comprehensive assurance about the property's legal status