Test Prep Courses/Illinois Real Estate Broker License Exam: Study GuideCourse
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Stacy Shelton has taught 9-12 grade Personal Finance, Graphic Design, Marketing, Entrepreneurship, AP Computer Science Principles, Computer Science Discoveries, Graphic Animation for over 28 years. They have a Bachelors of Science in Business Education from Shippensburg University and a Masters in Business Administration from Penn State University. They also have a certificate in Education Leadership. They have created and developed over 5 new high school courses.
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Shawn has a masters of public administration, JD, and a BA in political science.
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Find out what a quiet title action is. Learn the definition of quiet title action and understand its importance. Discover various quiet title actions examples.Updated: 11/21/2023
Table of Contents
- What is a Quiet Title Action?
- Quiet Title Action Importance
- Quiet Title Action Process
- Quiet Title Action Uses
- Quiet Title Action Examples
- Lesson Summary
Table of Contents
- What is a Quiet Title Action?
- Quiet Title Action Importance
- Quiet Title Action Process
- Quiet Title Action Uses
- Quiet Title Action Examples
- Lesson Summary
When a person takes ownership of real property, they own the title to the real property. A title deed is used to a document and identify the legal property owner. There are marketable titles and unmarketable titles. A marketable title is a title that results in the clear identification of the owner of the real property. An unmarketable title has questions regarding the ownership of the property, or the title could have defects. Potential prudent buyers typically avoid purchasing property with an unmarketable title due to the possibility of future litigation. There is a process to resolve unmarketable titles.
A quiet title action is a legal circuit court action taken to help determine who has ownership or title to a property that is in question. If there is a disagreement as to who is the rightful owner of a property, a lawsuit is filed to settle the disagreement. The goal of the action is to determine in court who is the owner and to quiet the claim or question that has been filed. The question of title ownership arises more commonly with a mortgage lender, the death of the title owner, easem*nt, boundary disputes, or property that has not been occupied for a length of time.
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When real property is sold, the rightful owner is the only person who can sell the property. The concern arises in the sale of the property if there is a cloud on the title that prevents the sale of the property. A cloud on title is a document that invalidates the title of ownership for real property and creates the question of who holds ownership of the real property. A cloud on title is also referred to as title defect or cloudy title. If there is a cloud on title, an unmarketable title is created and a prudent buyer would not purchase the property.
When an unmarketable title exists, the property is less likely to be purchased. There are several reasons for a cloud on the title resulting in an unmarketable title, including the following:
- When the owner of the property does not continue to make mortgage payments and the mortgage lender files foreclosure proceedings a cloud on the title exists. This creates a lien on the house. A lien gives ownership to the original mortgage company. If the owner tries to sell the house, a lien on the property will exist and another new lender will not approve a loan for a new buyer for this house
- If the property owner fails to pay property taxes, a lien can be placed on the property, also resulting in a cloud on the title. A lien gives ownership of property to the government due to owing back taxes.
- When a person dies, there could be a question of who inherits the property, creating probate issues which can lead to a cloud on title.
- A fraudulent title or title that has been falsified results in a cloud on title.
- A cloud on title exists if there is a dispute over the property lines identified in the sales agreement or if there is a descriptive easem*nt dispute.
When a cloud of title exists, a quiet title action can be filed to help create a marketable title. State laws guiding quiet title action vary, so It is important to research the process in the state where the quiet title action process will take place.
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The process for filing a quiet title action can vary depending on the state where the real property is acquired. The process can take up to six months to resolve, but it will depend on what defect or cloud on title is in question. A quiet title action is initiated by anyone who believes they have ownership rights to the property.
The process can vary depending on the cloud on title that exists and the state in which the quiet title action is being filed. The following are the general steps that are followed for a Quiet Title Action:
1. To establish that there are no liens on the property, a deed search should be initiated. A copy of the deed from a local county assessor will be able to provide this information.
2. Property boundaries need to be determined in order to ensure that the land in question lies within the proper boundaries.
3. A quiet action is filed that identifies the owner, parties involved, and the complaint in question. The court filing is provided to all people named in the quiet action. This quiet action title is processed with the local court.
The resolution to this court filing is filed with the local court and serves as a public record in the land and deed office. The court's resolution to the quiet title action can clarify and establish ownership and clear liens and any defects in the title. The quiet title action has now established a marketable title.
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Quiet title actions are filed to help resolve ownership concerns. Some ownership rights are easier to prove than others. The following are examples of quiet title action uses:
- When a person dies, questions can arise as to who inherits the property. Anyone who feels that they have ownership or rights to the property can question inheritance. If the property goes to an estate sale, all parties that have ownership rights must be notified prior to the sale. If someone feels that they had inheritance rights and that they were not notified, they may question the sale of the house. A quiet title action may be filed by the family member to prove ownership rights.
- A lien is placed on a property when debt is owed on the property. A lien can be placed on the property by a mortgage lender, tax collector, or contractor. If it is believed that the lien is a fraudulent claim, a quiet title action will force the lienholder to appear in court. If the lienholder cannot prove their case or if they do not show up to court, the lien is removed.
- Adverse possession can be settled using a quiet title action. However, adverse possession can be difficult to prove. There are three elements that establish adverse possession. First, it has to be obvious to everyone that the claimant has sole use of the property. In addition, the claimant had to gain use of the property without force or duress. Lastly, the claimant must prove sole use of the property for a lengthy number of years. The number of years needed varies from state to state.
The legal filings of a quiet title action help ensure that proper ownership is identified. The process and elements needed to establish a case vary from state to state.
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There are many reasons why a quiet title action may be filed. It is important to remember that anyone who feels they have ownership rights to property can file a quiet title action. The following are two examples of how a quiet title could be used:
- A farmer extends his fence into his neighbor's land in order for the farmer's cows to graze. The farmer has used this fenced area for over fifteen years. Everyone in the community is aware that the farmer was using the neighbor's land for the cows to graze. The neighbor decides to sell the property. The farmer can file a quiet title action arguing the land the farmer was using is prescriptive easem*nt and that the farm now owns the land. The farmer can try to gain ownership of the land he was using for his cows to graze.
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- A sale agreement for a house was signed between the buyer and the seller. However, the seller dies prior to the settlement of the house. The seller's son was identified to receive personal properties owned by the seller. Either party, the son or the buyer, could file a quiet title action to determine who has ownership of the house.
States vary in the handling of quiet title actions. Some states have statutes in place to handle quiet title actions, while others states use the courts to make their own rules on handling the action. It is common that the proof of ownership falls on the plaintiff.
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A title deed is a document used to establish ownership of a property. However, there are many reasons why property ownership could be questioned. A cloud on title is a defect or issue with the ownership of property. The cloud on title could arise due to missed mortgage payments, the death of the property owner, questioning of property boundaries , or fraudulent paperwork. These concerns cause the property to be unmarketable to a prudent buyer. One example of a cloud on title is when a lien is placed on a property. A lien is an when another party has a right to title due to the owner owing back mortgage payments or back taxes. It can also result in the denial of a loan by the mortgage lender.
A quiet title action can be filed to help determine who has a valid claim to a title for the property. A quiet title action is a lawsuit filed in court to determine ownership rights. The lawsuit goes through a process to determine ownership. Upon resolving the suit, the title judgment is recorded with the local register of deeds office or land records office. There are many claims including boundary disputes, adverse possession, and prescriptive easem*nt that can be resolved through a quiet title action.
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Additional Info
Quiet Title Action Defined
A quiet title action is a lawsuit commenced by the owner of a parcel of real estate who brings all parties that may have an adverse claim or interest in the property to court as defendants. The defendants are required to establish the validity of their claim or interest or be prevented from asserting it ever again. You can think of a quiet title action as a court proceeding to ''quiet'' or resolve disputes regarding everyone's claims or interest in the real estate. Once the suit is finished, all disputes concerning title (i.e., right of ownership) to the real estate will be resolved as it concerns the defendants named in the lawsuit.
Clearing Clouds and Making Title Marketable
Quiet title actions are a common means of clearing title defects, often called clouds on title. A cloud on title is some claim or defect found in the public land records regarding the real estate that may impair or even prevent the property from being sold or mortgaged. If property is unable to be sold or mortgaged to a reasonably prudent person because of a title defect, we often say the title is unmarketable. Once the court renders its judgment in a quiet title action, the judgment can be recorded in the land records office in the county where the real estate is located. Title to the real estate will then be marketable, which means the owner's title will be sufficiently free from defects or questions so that the real estate can be sold or mortgaged.
Examples of Claims Resolved by Quiet Title Actions
Examples of typical claims that may be resolved through a quiet title action include:
- Claims of adverse possession where a person acquires legal title to property owned by another through adversely possessing it for the time required by statute. For example, a neighbor that lays a driveway over your property without your permission for a sufficient period of time may acquire title to the property underlying the pavement if all the other requirements of adverse possession are established.
- Boundary disputes, such as neighbors disputing that a fence or stream demarcates the boundary between the two properties.
- Survey errors, such as a survey description used in a deed to legally describe a lot failing to completely close the perimeter around the lot, calling into question the boundary and total square footage of the lot.
- Allegations of fraudulent conveyance (transfer) of the property, such as a con artist conveying the same property to two or more different people.
- Validity and enforceability of liens, such as a mortgage lien where the underlying debt has been paid but the lender failed to file a lien release and no longer is in business to do so.
- Validity or existence of an easem*nt, which is the right to make a specific use of the property of another, such as the right to cross over a neighbor's land to access a public street.
- Claims of prescriptive easem*nts where a person acquires an easem*nt by using the property of another without permission for specific period of time much like adverse possession described above. For example, if you use someone's dock long enough for fishing and the other requirements for a prescriptive easem*nt are established, you may acquire the legal right to use the dock.
Lesson Summary
Let's review what we've learned. A quiet title action may be brought to clear a cloud on title and make the title marketable, so it can be sold or mortgaged. A quiet title action is a legal proceeding where the owner of the real estate sues one or more parties that have an alleged adverse claim or interest in the property. The defendants must establish the validity of their claim or interest or be prevented from pursuing the claim or interest in the future. The court will issue a judgment determining which parties have a valid claim or interest. The judgment will then be recorded in the appropriate land records office, making the title to the property marketable.
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