In title insurance, what does the "abstractor" do?

In the context of title insurance, the role of the abstractor is crucial for ensuring the integrity and accuracy of property titles. The abstractor conducts title research, which involves a thorough examination of public records, court records, and other documents to trace the history of a specific property’s title. This research helps to identify any potential issues, such as liens, encumbrances, easements, or claims that may affect ownership.

By preparing a title history report, the abstractor provides valuable information to the title insurance underwriters and the buyers or sellers involved in a property transaction. This report supports the underwriting process by ensuring that all relevant title information is disclosed and assessed before issuing a title insurance policy, thereby mitigating risks associated with property ownership.

The other choices encompass different responsibilities that are not part of the abstractor's role. For instance, reviewing loan agreements, processing claims, and negotiating contracts are distinct functions typically handled by other professionals within the real estate or legal industries. Therefore, the abstractor's specific focus on conducting title research and compiling a title history report is essential for smooth real estate transactions and the effective functioning of title insurance.