Quiet Title Legal Action: Facts You Should Know

When a person files a quiet title suit, this is a legal action regarding property ownership declarations. The reason it's called "quiet" is because when the case is settled, the dispute is considered settled and allows all parties to be quieted down. This may occur with a foreclosed house, duplex, condominium or townhouse or any piece of property that is being auctioned off for delinquent taxes due to the county assessor's office. There are also times, depending on the region, that this action pertains to a renter who has been residing in a home and is evicted.

Reasons For A Quiet Title Lawsuit

There are various reasons why a quiet title action might be brought to court including land ownership disputes, property line mix-ups, unresolved successions or missing heirs, mistakes made by survey companies or recording errors by the clerk of court, or boundary challenges that affect taxation. The most common areas where boundary and land disputes occur are in rural regions of the country. In rural areas lots are often odd sized and lack the uniformity of traditional lot sizes of subdivisions. In the less formalized divisions, much of the land is undeveloped and subject to misinterpretation more often and easily. Because of any of the disputes, a clear title and insurance would be difficult to obtain. Once this lawsuit has been settled, obtaining title insurance with a clear title would be possible.

Using A Lawyer

Many investors who purchase distressed properties or those with liens hire attorneys to handle this process. The attorney should be experienced in real estate and business transactions. While this is one option for completing the transaction, lawyers charge several thousand dollars and the court process can take six months to one year to complete. There is an alternative procedure that investors can use and may not be aware of.

Alternative Process

The alternative process that investors can take advantage of often takes just six to eight weeks to complete at a fraction of the cost of quiet title actions. As long as there aren't any complications, this technique is a very streamlined and effective procedure in certifying a property for title insurance. When a person purchases a deed or distressed property that may have a cloud on the title, he or she would contact and pay the company who completes the process. Fees for this shorter procedure may range from $750 to $1,500 plus filing fees and other related costs. In a worst case scenario, an investor would still need to go through the court systems to finalize the procedure.

Investors may wonder if it is worth their while to go through the process of buying deeds, liens and distressed properties through auctions or other means. It would depend on the individual, his or her comfort level in taking risks, the region of the country and how much capital he or she has to invest. There is a substantial amount of profit to be made via these proceedings, especially if the streamlined alternative methods are used as opposed to time and money that could be spent for a lawsuit declaring quiet title.