Imagine being in the final stages of closing on the sale of your home, only to find out that a title issue is holding up the process. It could be an unresolved lien, a pending ownership dispute, or clerical errors in property records. These issues, collectively known as clouds on the title, can create uncertainty about the property’s ownership, potentially delaying or derailing the sale. This is where a quiet title action can be a game-changer.
Some of the most common situations requiring a quiet title action that we have seen include:
- Liens– A lien or judgment should be paid off at closing. Thus, until these are paid off, they are effectively a cloud on title. These can take the form of mortgages (the most common), but can also include judgments, tax liens, HOA liens, etc.
- Deeds– Often times, a current or prior owner attempts to convey the property to a family member, friend, etc. by drafting and recording their own deed. However, recording deeds and changing title to property is something that requires meticulous planning and a strict adherence to Florida law. If not done properly, these random deeds can create breaks in the chain of title, questions surrounding who actually owns the property, etc. Therefore, it is always best to hire an attorney when altering title to a property, but if an issue does arise, a quiet title action can help.
- Fraud– People sometimes attempt to transfer their property out of their name to avoid creditors or from having to pay out a judgment that was entered against them. These transfers, if done with the intent to avoid (or defraud) creditors, can be addressed in a quiet title action.
- Boundary Disputes– If there is a dispute as to the exact location of a property line, whether through competing surveys or simply neighbor disagreements, a quiet title action can help resolve these by requesting a court to determine the exact location of the property line.
What does a quiet title action do?
If any of the above situations arise, a quiet title action can help. A quiet title action is a legal process aimed at clearing up any doubts or claims on a property’s title. It’s essentially a formal request to the court to resolve any existing disputes or questions about a property’s ownership and legally declare you the sole owner. This ensures you have a clean and marketable title.
In a nutshell, the process involves filing a lawsuit in court, notifying the interested parties and obtaining a judgment if the case is ruled in your favor. If you prevail, the judgment will likely resolve all title issues and allow you to proceed with closing on the property.
How it can help when selling your home
Buyers want assurance that the home they’re purchasing doesn’t have hidden claims or legal complications that could pop up later. Stated differently, the buyers want to make sure that they are buying what they intend to buy and that they can then take ownership of it. If a title search uncovers issues affecting the property’s ownership, the buyer might get cold feet, request a price reduction, or even back out of the sale.
Clearing up any potential problems ahead of time with a quiet title action can help you avoid unexpected last-minute hurdles and speed up the closing process. Additionally, you are more likely to get a good deal with a clear title.
While a quiet title action can help resolve any title issues with your home and allow you to proceed with the sale, it is still a formal court proceeding. What does this mean? It means that quiet title action can be costly, unpredictable (based on if other notified parties appear in the case), and time-consuming. Therefore, we always recommend people do all they can to prevent having to file a quiet title action. This can include conducting a title search on your property, getting title insurance, obtaining a survey, etc. However, the most important protection of all, is to have a qualified attorney help you with all your property related claims and transactions, whether you want to add a family member to the deed or simply have a survey done. Spending the money on an attorney up front can save you months or even years of headaches down the road if you find yourself having to file a quiet title action.
Filing a quiet title action involves navigating complex legal procedures and dealing with multiple parties who may have competing claims. Seeking qualified guidance to handle the technical aspects, like preparing legal documents, adhering to deadlines, and addressing any challenges raised in court, can help achieve a desirable outcome. Here at Corey Szalai Law, PLLC, we have handled numerous quiet title issues and have the experience needed to help you quickly and efficiently resolve yours. Contact us today to schedule a consultation to see how we can help you resolve your title issues.