Quiet title action, explained

Disputes over who is the rightful owner of a piece of real estate are not only common, they can sometimes become very bitter and cause expensive legal battles. Boundary disputes, undiscovered liens, unknown heirs claiming ownership — these are just a few of the types of conflicts that can arise regarding the title (or rightful ownership) of a property.

Sometimes a person who believes themselves to be the true owner will bring a quiet title action to legally formalize their position.

What is a quiet title action?

Before diving into the finer points of a quiet title action, we should back up and define what a title is.

A title is a legal term, an abstract concept in fact, that maintains the owner’s rights to a property. Through multiple owners, there is only one legal title holder at a time. When you buy a property, these rights are transferred to you, and from you to the next owner, and so on.

The title is different from a deed, which is a physical document that is similar to the title but with key distinctions. Holding a title gives you the legal right to use and modify the property within the boundaries of the law. It implies that you can access, occupy, and control the land or property.

When the title of a property is claimed by two or more parties (sometimes known as a clouded title), one or more of them may pursue a quiet title action, or suit to quiet title. This is a legal proceeding meant to settle who the rightful title owner is. It seeks to clear up any “clouds,” such as liens, unpaid taxes, even fraud that can make it difficult to sell or transfer the property in the future. When the case is settled, the title is considered quiet.

Note that a title with zero disputes is considered a clear title, not a quiet title.

How quiet title actions work

If someone wants to have a quiet title – claiming a superior right of ownership over everyone else who has a claim to the property – they file a quiet title action or a suit to quiet title in a court of law.

The plaintiff in the suit is the person(s) or entity bringing the suit and claiming their property ownership interest trumps all others. The defendants in the suit would be anyone else who potentially has a claim to the property.

Preferably with the help of a real estate attorney, your quiet title action will proceed through some key steps:

• Research ownership history of the title: Each time the property exchanged hands in the past, there would have been a title company involved in the sale closing. This company should have records of its title research and may have information on any previous title disputes. The county records of all land transactions are also available to the public.
• Draft a quiet title petition: This is a formal legal document written on a template and is best done by an attorney. The process also includes other actions, such as issuing summons to other parties, public notice, and more.
• Serving and filing the petition: Not only will your lawyer file the petition with the court, but they and you must serve notice to all other interested parties in the suit to your action. You must be able to prove that these parties were served according to the laws in your state.
• Hearing and judgement: On your day in court, your attorney will plead your case to the judge formally, even though the court has already reviewed your written petition. If others are present to dispute your case, they also will argue before the judge. At the end, the judge will issue a summary judgement declaring who the rightful owner of the title is. If no other party shows up, you will obtain a default judgement of ownership.
• Correcting the official record: Your attorney will submit a final decree to the public land records describing your rights to the title. It should clearly explain the nature of the title dispute and declare a resolution to that particularly problem in detail. It should leave no room for any future title examiner to question your ownership. Once the title company receives notice of your quiet title action, and in case there was a dispute over ownership, you would then have legal standing to file an eviction lawsuit to remove any opposing party from the property should that be necessary.

What is the average cost of a quiet title action lawsuit?

Expect to pay anywhere from $1,500 up to $5,000 to complete your quiet title action. The cost can vary significantly depending on your attorney fees, the jurisdiction in which you file, and whether or not the action is contested. In addition to what you pay your lawyer, other costs and fees you’ll incur include:

• Court filing fees
• Fees for process servers (summons)
• Fees to publish public notice
• Any settlement fees, if necessary

Even if an attorney charges an initial consult fee to tell you that a suit to quiet title is not necessary, they will save you the time and further expense of moving forward.

Common reasons for a suit to quiet title

The purpose of a quiet title action is to resolve any disputes or ambiguities regarding property ownership. Here are some examples of issues with the title or actions brought by others that can spur a quiet title action.

Gaps in the title

The chain of title is a record of all property owners from the original to the current one, and the transactions that have taken place.  It is where you can look to see who has owned the property and how it was transferred. If there is a gap in the ownership history of the property, there is a break in the chain of title and someone may eventually make a claim to your land. A suit to quiet title will give anyone with a claim on the property their day in court. If nobody does, the court will likely award your quiet title.

Adverse possession

Commonly referred to as “squatters’ rights,” adverse possession involves someone openly taking up residence in a property for their use that they don’t have legal right to. This could be someone who moves into a cabin that you rarely use, or takes up residence on a part of a piece of land you own. If they reside there long enough, they can establish a legal right to the property if they meet the legal standards of the state or local jurisdiction.

The standard is very high for a person to claim adverse possession of a property or land that you own, but you should keep an eye on all property you own and make sure it is clearly staked and posted as private.

Property boundary disputes

Disputes over boundary lines by the owners of adjacent properties are some of the most common “clouds” on a title. This can affect where and/or if somebody can build a house or road or plant a tree. Boundary disputes are even quite common in city or suburban neighborhoods.

Easement disputes

Easements allow access to your property for specific purposes. For example, you might have a utility easement that allows the power company to access lines that cross your property. A private easement is a property right an owner can create, sell or give to another party and should be recorded on the property title. Whether the easement is written down or it’s something that’s been done for years by custom, quiet title suits can help resolve property disputes.

Remove lienholders

A lien can exist in many forms, but in general it is a legal claim against your property, such as your home, that can be used as collateral to repay a debt. A mortgage lien held by your mortgage lender is one of the most common types, but there are others. Let’s say you have a contract with a company to do some work for you and they won’t remove a mechanic’s lien placed on your property after you have paid in full. You could force a quiet title proceeding so that you can get the lien removed.

Quitclaim deeds

A quitclaim deed allows for someone to transfer the ownership of their property to you simply by renouncing their claim to the property. It might even be a gift from a relative, and you think you have title to a “free” piece of land. But just because that person gives up their claim to the property doesn’t mean that no one else has a claim to it.

Unknown liens, unpaid back taxes, or contested wills are just a few of the problems that can arise to draw the validity of your newly acquired title into question. If you can’t get a guarantee of a clear title, you might initiate a quiet title proceeding. If no one comes forward or you otherwise prevail, you’ve cemented your ownership. In the case of a quitclaim deed that may invite challenges, or just for your general peace of mind, you might consider buying title insurance to protect your owner’s rights.

Estate sale

Let’s say someone dies without leaving a will and the people in charge of dissolving the estate immediately put the deceased person’s house up for sale. You are the lucky buyer in a probate sale and the new title owner, or so you think. There’s always the possibility that family members who have a claim to the property might come out of the woodwork if they weren’t notified of the sale. 

Fraudulent conveyance

Fraudulent conveyance occurs when someone sells or transfers a property to someone else to hide assets or avoid creditors, such as in bankruptcy. This transfer can create disputes over who legally owns the property, leading to a clouded title. For example, if creditors can prove that the house you purchased was an asset they should have collected, you might find yourself in a nasty court battle and even lose the property. A quiet title action can help resolve these disputes by legally establishing the rightful owner and clearing the title.

With something as important as a large real estate purchase, you should be alert to common scams and frauds, such as home title theft. Real estate scammers getting better at impersonating real estate professionals, lenders, and title companies.

FAQ about quiet title actions

Let’s address some of the most frequently asked questions and misconceptions people have regarding quiet title actions.  

How do I file a quiet title action?

You can pursue a suit to quiet title on your own, but your chance of success is much higher if you hire an experienced attorney. There is a template of actions they’ll follow, and if there are disputes to your title, they will represent you in court. Expect to pay in the range of $1,500 if there is no contest to your suit, or around $5,000 if someone else lays claim to the title.  

What are the downsides of actions to quiet title?

Actions to quiet title do have their drawbacks. In addition to the potentially high legal expense, some states don’t let every dispute that could affect the title be rectified through a quiet title proceeding. Before moving forward with this, make sure you can actually accomplish what you set out to do with an action to quiet title in your jurisdiction.

How can you be successful in a quiet title action?

Your best chance for success in a suit to quiet title is by hiring an experienced attorney. Your lawyer will know how to collect all relevant documents, write a complaint to the court, contact any and all possible defendants or possible claimants to the title, publish notice of the suit, and argue your case with the court.

A successful quiet title action results in a court judgment that officially establishes you as the sole owner of the property in question. This judgment should state that any competing claims or interests in the property are null and void. Once you have the judgment that clears the title, the judgment should be recorded with the county clerk or register of deeds. This officially updates public records to reflect your ownership status.  

What is an example of a quiet title action?

There are numerous reasons for people to bring a quiet title action. Some of the most common involve boundary disputes, inherited property settlements, claims of adverse possession, unreleased liens, missing heirs in estate sales, tax liens, abandoned home sales, and more.

The bottom line: Quiet title actions can resolve property disputes

By bringing a suit to quiet title, a property owner seeks to eliminate the claims of any other party to ownership of that particular piece of real estate. With the quiet title established by a court in the public record, the rightful property owner can use the land as they wish and eventually sell or transfer the property with confidence to another party.

A quiet title action cannot, however, eliminate valid or outstanding liens (tax liens, for example) or mortgages the property owner has agreed to. The effectiveness of quiet title actions in clearing encumbrances varies, and property owners should consult with an attorney to understand the applicable legal procedures needed to address particular issues.

To further clear up any title issues, learn more about real estate attorneys, how they can help you navigate difficult legal disputes, and how to find one.