What is a Quiet Title Action?
Whether you are buying or selling a property, establishing clear ownership is one of the most significant aspects of any real estate transaction.
One of the most straightforward ways to acquire proper ownership is through quiet title action. In simple terms, quiet title action is a standard lawsuit filed to clear gaps in title. It carries the utmost significance in real estate and is crucial in the easement of title defects. It is considered an essential legal proceeding in most cases of property disputes. The outcome of filing a quiet title is a court order releasing a clear title. A clear title depicts a transparent picture of the rightful owner and property titles.
Quiet Title Action Uses
Having discussed a basic insight of quiet title action, it is time to delve deep into the situations where filing one is vital. It can become a keystone in resolving issues ranging from adverse possession, quit claim deeds, surveying errors, tax issues, boundary disputes, fraudulent conveyance, and more.
In certain situations, the missing heirs can cause a huge hindrance later on in life; therefore, having clear ownership of a property by going for a proper lawsuit is the right way to go. Also, sometimes, a shared property can pose problems to a potential buyer, and having a clear title will save you from future trouble. Lastly, if you suspect your property might have a lien against it, filing a quiet title action will result in removing lien holders.
Common Reasons for Filing a Quiet Title Action
After discussing the situations in which a quiet title action can be necessary, let’s share the most common reasons behind filing one. Usually, having a clear title holds paramount importance in real estate, yet some people might prefer other alternatives. That being said, some situations that might lead individuals to file one are easement and boundary disputes, gaps in title, and clear mortgage title defects. One of the most common ones is a break in the chain of title, which happens when there is unclear ownership of the property for a certain period. Individuals opt for a clear title to clear any ambiguity and avoid future problems.
Moreover, in cases where a buyer is purchasing a property through a real estate sale, they might opt to file one to eradicate potential property claims.
Why Would You File a Quiet Title Suit?
Now, after sharing some insights into the basic definition, uses, and potential reasons for filing a quiet title, let’s discuss in detail the two primary reasons an individual would file one. As discussed previously, there can be several situations that might require clearing title, but people usually opt for ways that involve less money and time. But when it comes to these two reasons, an individual would go for a proper lawsuit and court proceedings.
1. Technical Title Defect:
In simple terms, a technical title defect means when there is a break in the chain of title and the property. Although it has a rightful ownership, it might have issues in putting it out for selling. In this case, filing a quiet title action will result in clearing the title and filling the gap in the chain of title. The owner will then be able to resell it and transfer the ownership to the buyer without any hindrances.
2. Actual Ownership Dispute:
When there is a real dispute over property ownership, filing a lawsuit would be the best approach. This usually occurs in inheritance disputes, multiple people claiming property ownership, etc. Proper court proceedings with the judge’s final decision can relieve the unlawful claim of the property, and the real owner will be able to have a clear title to their name.
The Process of a Quiet Title Action
- If you have decided that you are going to file a quiet title action, you need to initiate by getting a copy of the deed first from your local county’s office.
- After this step, you must research your end to navigate the present ownership state. Your title action will not receive the grant if you don’t have enough evidence, so make sure you are working on it.
- Contact a company to present the title commitment, and they will provide the title insurance. Consult an attorney and file an action to clear the title.
- Then, follow up with the court proceedings and await the judge’s orders. After following a proper course of proceedings, the title is declared quiet for the owner. This entire process can take almost eight to twelve weeks and might take longer in complex cases.
How Much Does a Quiet Title Action Cost?
Filing a quiet title action can range from around $1,500 to $5,000. This is an average estimate, and to navigate the exact costs, you need to contact a legal professional. Certain factors like location, attorney fees, complexity of the case, filing fees, and potential settlements can impact the costs to a huge extent. Therefore, to get an exact quote for your case, you must visit a court and see how it goes.
Conclusion
To summarize today’s discussion, filing a quiet title can be an integral part of real estate. Whether buying a property or selling one, ensure having undisputed ownership to have a calm state of mind. If you are struggling with title issues, consulting with expert legal professionals is the way to go. Real estate issues can be tricky, and following proper guidelines through each step can make the entire journey feasible. Having the rightful ownership of a property can save you from many problems in the future.
