Quiet Title is a powerful and special type of legal action used to determine ownership of real property. Anyone with a valid claim of ownership in the real property can initiate a quiet title action in court to clear a "cloud on title." If there is a cloud on title, the valid owner cannot sell or take financing against the property until it is removed through a quiet title action.
Frequently, people will file a quiet title action to clear for the following reasons:
- Eliminate Other People On Title Who Don't Belong
- Remove Improper Liens from Paid Off Mortgages
- Resolve Title Disputes
- Settle Boundary Disputes
- Eliminate Claims by Prior Owners
- Wipe Out Invalid Mechanics Liens and Other Liens
- Remove Encumbrances
- Remove Invalid Partners, Joint Owners, or Family Members From Title
- Correct Errors in Deeds
The true owner must clear title before they can sell the property or refinance. By perfecting ownership through a Quiet Title action, the Court Order serves as a form of "guarantee" that Title Insurers can accept and now the owner can sell the property or secure financing. Be advised that either financing or selling property with a cloud on title constitutes a failure to disclose and you could be sued for Fraud. See our blog on Seller Must Disclose Defects to gain more information and consult our offices immediately if you have any questions.
Author: Christopher M. Brainard, Esq.