SS143: What is a Quiet Title

SS143: What is a Quiet Title

Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing What is a Quiet Title. Most real estate transactions close without any issues; however, in certain situations, the title cannot be conveyed since it has a “cloud” or “defect.” In this episode, Charles discusses what quiet title means, and when it is required during the purchase or sale of a property.

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Talking Points:

  •       Quiet title refers to any lawsuit that tries to confirm ownership, correct a title issue or settle a property ownership disagreement. The final result of a quiet title lawsuit is a court order that resolves the ownership of the subject property. Every time a property is transferred from one owner to another owner, a new link is added to the “chain of title” of the real property. A quiet title corrects the “chain of title,” when the chain has been disputed due to a transfer error. When there are multiple claims to real property, and the legal proceeding has not yet been completed, that property is said to have a “clouded title.”
  •       Quiet title action is a legal action that is designed to resolve a property ownership dispute. Quiet title actions are utilized when the title of real property is in question, in order to determine who the rightful legal property owner is.
  •       There are two main reasons why a property owner would file a quiet title suit:

o   1. Actual ownership dispute: When there is a dispute over the property’s true owner.

  • When two or more parties claim ownership of the same property, a quiet action lawsuit is used to settle an actual ownership dispute. The quiet title action is a real lawsuit, however, there is rarely a claim for money to be paid by one party to another.
  • Any parties that claim an ownership interest in the subject property are the defendants, and once the lawsuit is filed, the defendants receive notice and are allowed a chance to claim an interest in the property. If they do not move forward within the stated timeframe to defend their position, they lose the right to do so, and their ownership claim disappears.

o   2. Technical title defect. There is no dispute over who the true owner is however, there previously were errors during conveyance which has clouded the title, creating an issue during the sale or refinancing of the subject property.

  • In a technical title defect, the real estate attorney usually will list all of the title defects to a judge, and ask the judge to cure these defects with a court order. The judge’s final court order would then be filed in the county property records. Since this order is now part of the “chain of title” when the owner wants to sell the property in the future, all parties to the sale would be able to locate the quiet tile order in the public property records.
  •       Other Reasons to Utilize a Quiet Title Action

o   Easement and boundary disputes: clarifying issues created by an easement and/or disputed property lines

o   Adverse possession: where a party occupies property that is not legally theirs for the purposes of laying claim to it.

o   Quitclaim deeds: a situation where the previous owner disclaims interest in a property but does not promise that the title is clear.

o   Gaps in title or links missing in the chain of title: a property has been unoccupied for a while, allowing third parties to make offers on the real properties in order to purchase it.

o   Remove lienholders: clearing up a problem with a mortgage lender whose interest in the property was not correctly handled after a previous mortgage was paid in full. The lien possibly was not removed.

o   Estate sales: after the death of a property owner, where it is unclear if the heirs have been notified of the property sale.

  •       Quiet title actions are handled by real estate attorneys, and the procedure varies from state to state.

Transcript:

Charles:
Welcome to Strategy Saturday; I’m Charles Carillo and today we’re going to be discussing what is a quiet title.

Charles:
Have you always wanted to invest in real estate, but didn’t have the time, didn’t know where to find the deals, couldn’t get the funding and didn’t want tenants calling you. Since 2006, I’ve been buying income producing properties and great locations that provide us with consistent passive income. While we wait for appreciation in the future and take advantage of tax laws while we’re waiting and unlike your financial advisor, we invest alongside our investors in every property we purchase. Check out to investwithharborside.com. If you like the idea of investing real estate, if you like the idea of passive income partner with us at investwithharborside.com, that’s investwithharborside.com.

Charles:
Quiet title refers to any lawsuit that tries to confirm ownership corrected title issue, or settle property ownership disagreement. The found result of a quiet title lawsuit is a court order that resolves the ownership of the subject property.

Charles:
Every time a property is transferred from one owner to another owner, a new link is added to the chain of title of the real property. A quiet title corrects the chain of title when the chain has been disputed and due to a transfer error. When there are multiple claims to real property and the legal proceeding has not yet been completed, the property is said to have a clouded title. Quiet title. Action is a legal action that is designed to resolve a property ownership dispute. Quiet title actions are utilized when the title of rail property is in question in order to determine who the rightful legal owner is. There are two main reasons why a property owner would file a quiet title suit. Number one is actual ownership dispute. When there’s a dispute over the property’s true owner, when two or more parties claim ownership of the same property, a quiet action lawsuit is used to settle an actual ownership dispute.

Charles:
The quiet title action is a real lawsuit. However, there is rarely a claim for money to be paid by one party to another. Any parties that claim an ownership interest in the subject property are the defendants. And once the lawsuits file, the defendants receive notice and are allowed a chance to claim interest in the property. If they do not move forward with the stated within the stated timeframe to defend their position, they lose the right to do so and their ownership claim disappears. Number two is technical title defect. There’s no dispute over the true owner is. However, there previously were errors during conveyance, which has clouded the title, creating an issue during the sale or refinancing of the subject property in a technical title defect. The real estate attorney usually will list all of the title defects to a judge and ask the judge to cure these defects with a court order.

Charles:
The judge’s final court order would then be filed in the county property records since his order is now part of that chain of title. When the owner wants to sell the property in the future, all the parties to the sale would be able to locate the quiet title order in the public property records. Now, other reasons to utilize a quiet title, action easements and boundary disputes, clarifying issues created by an easement and or disputed property lines. Adverse possession where a party occupies property that is not legally theirs for the purposes of laying claim to it. Quick claim deeds a situation where the previous owner disclaims interest in a property but does not promise that the title is clear. Gaps in title or links missing in the chain of title. So this would be where a property has been unoccupied for a while, allowing third parties to make offers on the real properties in order to purchase it.

Charles:
Next would be remove lien holders. So clearing up a problem with a mortgage lender whose interest in the property has not correctly handled after a previous mortgage was paid off, the lien possibly was not removed. Finally, estate sales after the death of a property owner where it’s unclear if the errors have been notified of the property sale. So quiet title actions are handled by real estate attorneys and the procedure varies from state to state. So I hope you enjoyed. Please remember to rate, review, subscribe, submit comments and potential show topics at globalinvestorspodcast.com. Look forward to two more episodes next week. See you then.

Announcer:
Nothing in this episode should be considered specific, personal or professional advice. Any investment opportunities mentioned on this podcast are limited to accredited investors. Any investments will only be made with proper disclosure, subscription documentation, and are subject to all applicable laws. Please consult an appropriate tax legal, real estate, financial or business professional for individualized advice. Opinions of guests are their own information is not guaranteed. All investment strategies have the potential for profit or loss. The host is operating on behalf of Syndication Superstar, LLC, exclusively.

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