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About Quiet Title Action
When you buy a real estate property, the title company will check for a clear title before the purchase transaction is complete.
The title document helps to determine the rightful owner of the property. But what happens if there is a claim of title on a property that you own?
In such cases, the disputes are settled with a lawsuit. In this post, we will learn what is quiet title action in detail.
What Is Quiet Title Action?
A quiet title action, or action of quiet title, is a legal action or lawsuit brought to establish or settle ownership of a real estate property.
The quiet title usually arises when there is a property dispute and is intended to remove or “quiet” an objection or claim to the title of the property.
After the quiet title suit is complete you would receive a clear title.
The purpose of the quiet title is to determine the rightful owner of the property that has a title dispute.
Ownership is ambiguous when there are multiple claims to the title that have not been legally resolved and is called the clouded title.
The term unclaimed property is usually only used after disputes over who has the right to take control of the property are raised.
Once the dispute is settled, there will be clear ownership of real estate or other titles, with no title disputes.
How Does Quiet Title Action Work?
Before you start working on the quiet title, you need to make sure you have a proper workflow. In this case, request a copy of the deed from the department or archives.
With the help of a real estate attorney (sometimes along with a real estate agent), you file a complaint for the action of quiet title and file the case in the relevant court.
Thus, a quiet title operates as a legal suit filed by a party who is claiming for the rightful owner of the property against all others claiming to have interest in the title.
Judges make decisions on the merits of the case and, if successful, issue rulings or judgments.
Once the process is complete and the assumed owner has succeeded in the action of quiet title, the property is deemed to be close to that owner and the title can no longer be contested.
From start to finish, the process may take less than 30 days to over a year, depending on the complexity of the claim, the state of the claim, and the number of courts pending cases.
When To File For Quiet Title Action?
When a title dispute arises, a quiet title can be used for many reasons. Here are some of the most common use cases for quiet titles.
Breaking the chain of ownership: The chain of ownership represents the ownership history of an asset. This chain shows the name of the owners who had owned the property in past.
However, if there are periods when no one is sure who owns the property, the new owner can file a quiet title so that all claims to the property can be heard in court.
If the respondents do not answer within the time limit, the quiet title is issued to the new owner.
Adverse Possession: Adverse possession, commonly referred to as “squatter’s right,” refers to the individual residing in a property without legal rights. If they stay there long enough, they can claim legal title to the property.
While several factors are necessary for an adverse possession claim to be successful, one way to contest it is to file a quiet title claim.
Property Boundary Disputes and Easements: Not all disputes are related to the property title. Sometimes there are simple issues, such as resolving property boundary disputes between claimants. Easements provide access to your property for specific purposes.
Whether an easement was created recently or created over many years, an easement can help resolve property disputes.
Exclusion of Other Lien Holders: A quiet title can be used to remove any lien on the property placed in error. For example, you have already paid the mortgage and the title shows it as a lien on the property.
Quitclaim Deeds: Quitclaim Deeds allow someone to transfer ownership of property by giving up a claim on the property. However, the downside is that just because the person selling you gives up a claim on the property, it doesn’t mean the other person can’t claim the property.
If you can’t get a clear title, you can start the quiet title process. If no one advances or otherwise wins, you’ve secured the title. Needless to say, this is a huge risk and you should consider homeowner’s insurance.
Estate Purchase: If real estate is purchased as part of an estate sale, there is always the chance that a family member with a claim on the property will challenge the title if they were not notified at the time of property purchase.
Conclusion
Quiet title action is one of the best ways to make sure that you have a clear title and that you are the rightful owner of the property in case of a title claim or dispute.
Keep in mind that filing for a quiet title does not necessarily mean that you get a clear title. In a title dispute, the judge needs to rule in your favor so that you can secure the title to the property.
It is suggested to speak to a trusted real estate attorney in case you need to use quiet title action.
