Filing A Quiet Title Action
A quiet title action is the name of a legal action intended to ensure that the owner of a property is in fact the real owner and that the property has no other ownership claims on it. The purpose of the quiet title action is to eliminate all claims, defects or perceived defects to the title. Many times a title company will require a quiet title action be filed in order to obtain title insurance on the property. A successful quiet title action will settle the matter and remove any cloud on the title.
Before you purchase any real estate, you want to make sure you have clear title to it. If not, you may later find yourself in a dispute to determine ownership. This is often the case when you buy investment property at a tax sale or through some other sort of auction process. Your property may be at risk.
Is Your Property At Risk?
Depending upon how you purchased the property, the property may have judgments, liens, claims by the prior owners, and other matters affecting the title. This is what we call “clouds” on the title. Meaning there is a flaw in the ownership records related to your property that needs to be resolved before you can sell the property. The cloud represents a real risk that a third party can claim ownership of the property at any time. To prevent this, it is often necessary to file a quiet title action to clear the title.