Do you know what a quiet title action is? To explain it simply, this is a legal proceeding, which is used for one of two different purposes:

  • It’s used for fixing a title issue
  • It’s used for settling a dispute over who owns real property

The best way for you to protect yourself is by being informed. Before you make an irreversible decision, be sure that you understand the information found here.

Quiet Title Action and the “Chain of Title”

Every time that real property makes the move from owner to another one there’s a new link that is created in the real property’s “chain of title.” There are extremely strict rules that govern how the new link is created. The rules make sure that the real propert owner is identified at any time by the exam of public records, helping to prevent any false claims of ownership.

For the system of private property rights to function appropriately, there has to be a certainty and stability regarding the ownership of real property. If there’s any confusion regarding ownership, the title companies won’t issue title policies and the buyers will not make a purchase. Put simply, the chain of title has to be fully intact.

A Suit is Necessary if the Chain of Title Has Been Broken

In some cases, the chain of title may be broken if the rules for transferring the real property have been broken. There are some situations when it is clear who owns the property; however, the chain of title is still broken. In other situations, there could be an outright dispute regarding property ownership.

How Can You Fix a Broken Chain of Title?

The quiet title action is a legal tool that is used for repairing the chain of the title in various situations. In most cases, the developer can fix all of the title problems with a single quiet title action. Within the title petition, the attorney for the developer will describe all of the defects in the title. They would request that the judge cures the defects using a court order that declares that the developer is now the official owner of the property in question.

The final order from the judge is then filed in the county property records and the order would become another link in the chain of title. In the future, if the developer sells the property, the title company for the buyer would locate the quiet title order within the public records, which conform the developer is the actual owner.

Is the Quiet Title Necessary?

This is a good question. If you use the wrong legal tool, it may cause an expensive title problem. In most cases, working with the professionals is going to be the best way to ensure that you choose the right legal action for your needs. They will minimize the issues and ensure that you don’t take the wrong steps. Being informed is the best way to ensure the proper steps are taken.