Quiet Title Actions: A Basic Guide

What is a Quiet Title Action?

A Quiet Title Action is a proceeding that seeks to establish ownership of a property. It is used to determine or challenge adverse ownership interests in a property and can also clear the property’s title (in the case of clouded title)

What is ‘Cloud of Title’?

Cloud of title refers to the title of a property being tarnished or restricted in some way. It can be any document, claim, or other burden that might invalidate the title or make it appear dubious.

Should I get a Cloud of Title Action or a Quiet Title Action?

A Cloud of Title Action specifically seeks to remove an instrument that is dangerous to the interests of the property’s plaintiffs.

A Quiet Title Statue specifically seeks to determine ownership of a property and to resolve adverse interests and disputes.

In most cases, a Quiet Title Statute can be used to remove a cloud on title. We advise, however, that you always consult an attorney. To discuss your options with us, click here.

Should I get a Quiet Title Action or a Quitclaim Deed?

A Quitclaim Deed promptly passes property rights from one individual to another – but it does not address title issues that the property may have. This risks the possibility that others may attempt to stake claims in the property later.

On the other hand, Quiet Title Actions fully ensure that the title is completely clear and clean.

Though it can be more time consuming, a Quiet Title Action is usually a safer and more thorough way of ensuring full ownership of property rights. We always advise that you consult an attorney. To discuss your options with us, click here.

Why Might You Need a Quiet Title Action?

• After purchasing a new property.
• When obtaining a of title insurance for your property.
• When purchasing a property after an owner’s death.
• If the selling individual passes away before a property sale is completed.
• If your property’s title has any issues that could potentially be problematic in the future.
• In tax sale and foreclosure purchases.
• As a property investor (to obtain future financing or resell the property).
• If you are investing in a property that you may transfer at a later date.
• In order to clear any clouds on the property title.

Risks of Filing a Quiet Title Action

As with any legal venture, Quiet Title Actions carry some risk. The action could call the attention of individuals who want to stake claim in the property. This can result in a property battle. In other cases, the Defendant can recover costs in property value through Plaintiff-paid compensation.

Tips To Remember

• Legal action can be time consuming. Results take time and patience.
• Always perform a title search upon gaining an ownership claim to a property (or, when possible, before)! This will allow you to preemptively recognize any clouds on the property title.
• You want to start proceedings for a Quiet Title Action immediately upon transfer of a foreclosure or tax sale.
• Secure a lawyer who is experienced in real estate law and Quiet Title Action lawsuits (such as the professionals at Equity Legal).

To find out how Equity Legal can help you file a Quiet Title Action or for assistance with other real estate needs, contact us today.