National Real Estate Practice Exam

An abstract of title is a comprehensive document that provides a complete history of ownership of a property, detailing the chain of title from the original owner to the current owner. It includes information about all transfers of title, liens, encumbrances, and historical documents affecting the property. This summary is essential for buyers, sellers, and lenders because it serves to verify the legitimacy of ownership and identify any potential issues with the title that may need to be resolved before a transaction can proceed.

The other options serve different purposes: property taxes pertain to the financial obligations of the owner, an inspection report focuses on the physical condition of the property, and a list of liens addresses financial claims against the property rather than the ownership history itself. Hence, the correct choice is the one that most accurately describes the essence of an abstract of title as it pertains to ownership history.