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What is a quiet title action?

| Jun 25, 2021 | Real Estate

As a business or investor, there’s nothing quite like the excitement and energy that comes with purchasing a new piece of commercial real estate. After all, more property means more opportunity.

However, the joyous circumstances can quickly sour if someone else claims title to the property. Images of drawn-out court battles and mountainous legal bills may inundate your mind. However, most title disputes are easily resolved with a simply legal mechanism known as the quiet title action.

This nifty tool can be used in a variety of circumstances and is conspicuously affordable. Here are some other things to know about it:

How does it work?

A quiet title action is a kind of lawsuit brought against every other person who claims to own the property. The action is filed with a court and seeks to establish sole title in the person or entity filing the action. Although opposing parties may dispute the action by filing a response, (like with any other lawsuit) most quiet title actions go uncontested.

When can it be used?

Quiet title actions are prized for their versatility and can be used in many different circumstances. However, they are commonly used to resolve title disputes arising from:

  • mortgage lender disputes
  • boundary disputes
  • adverse possession
  • the death of title owners

When can it not be used?

Although quiet title actions are suitable in many contexts, they are not silver bullets. For one, they cannot, settle a dispute arising from an issue with the actual property. If, for example, a person purchases a house only to realize it has a flawed foundation, they cannot use a quiet title action to seek recourse against the seller.

Quiet title actions may seem simplistic but, like with all other legal documents, they should only be drafted with the help of an experienced real estate lawyer.

Real estate law is riddled with vagaries, and ambiguities lurk behind every term and statute. The litany of considerations and variables that must be taken into account are simply beyond what most lay people can contemplate. Having professional help ensures peace of mind in the present and less headaches in the future.

If cost is a concern, many lawyers offer a free initial consultation at no out-of-pocket cost to the client.