Quiet Title Actions in Texas | Silberman Law Firm, PLLC (2024)

An important part of a real estate transaction is making sure that the title to the property is free and clear, meaning that no questions exist about ownership or liens against the property. Ideally, a title company or real estate lawyer ensures that such questions are identified and resolved before closing, confirming a “clear title” for the buyer. Sometimes, unfortunately, a buyer may discover after closing that the title in fact is not clear, resulting in a “cloud" on the title. Legally, a cloud on title results from an “outstanding claim or encumbrance on a property which affects or impairs the owner’s title.” Tuttle v. Builes, 572 S.W.3d 344, 360 (Tex. App.—Eastland 2019);Ferrara v. Nutt, 555 S.W.3d 227, 239 (Tex. App.—Houston [1st Dist.] 2018). While the title itself establishes ownership, a cloud on the title affects that ownership, causing confusion as to who is the rightful owner of all or part of the property or encumbering the ownership interest. In some cases, the property owner may need to resolve such issues through legal action.

Specific Causes of a Cloud on Title

Many different scenarios may result in a cloud on title, including deeds which are not recorded correctly, other contracts on the property, mistakes in property descriptions, even forgery, to name a few. The document itself, a will for example, may not even be publicly recorded. However, just the claim of its existence is enough to cloud a title. Even if the person disputing the title does not seek full or partial ownership of the property, the title is clouded by the claim itself. Miller v. Miller, 376 S.W.2d 80 (Tex. Civ. App.—San Antonio). Texan Development Co. v. Hodges, 237 S.W.2d 436, 439 (Tex. Civ. App.—Amarillo 1951, no writ).

Owner’s Options

Property owners do have some recourse, fortunately; they can state that the claim against the property is invalid or unenforceable and file a suit to remove a cloud from the title, also known as an action to quiet title. Vernon v. Perrien, 390 S.W.3d 47, 59 to 60 (Tex. App.—El Paso 2012, pet. denied);Longoria v. Lasater, 292 S.W.3d 156, 165 (Tex. App.—San Antonio 2009, pet. Denied). A suit to quiet title provides an equitable remedy to clear a title of an invalid, unenforceable charge against it. Tex. Prop. Code Ann. §§ 22.001to22.004,22.021to22.024,22.041to22.045.

In order to seek quiet title, the plaintiff must plead and prove three elements: the plaintiff’s rightful ownership of the property, a claim or encumbrance which disputes that rightful ownership, thereby questioning the validity of the title, and a statement that the claim or encumbrance is invalid or unenforceable. Heredia v. Zimprich, 559 S.W.3d 223, 229 (Tex. App.—El Paso 2018);Ferrara v. Nutt, 555 S.W.3d 227, 239 (Tex. App.—Houston [1st Dist.] 2018). In order to quiet the title, owners must also prove that the claim is severe enough to negatively impact their ability to enjoy full benefit of the property. While plaintiffs must provide an argument for the strength of their title, they are not required to trace the title to sovereignty. Glenn v. Lucas, 376 S.W.3d 268, 273 (Tex. App.—Texarkana 2012, no pet.);Katz v. Rodriguez, 563 S.W.2d 627, 631 (Tex. Civ. App.—Corpus Christi 1977, writ ref' d n.r.e.).

The defendants must provide proof that their claim is valid or enforceable. Failing to do so, the plaintiff successfully quiets the title, clarifying ownership of the property in question. The plaintiff is not eligible for damages, not even attorney’s fees in most cases. The main goal of the action is simply to clear the title.

For most people, buying property is one of the biggest investments they will make. Even with the work of title companies, transferring ownership is not always problem-free. Securing the advice and help of an attorney trained in real estate law will benefit a client before, during, and after the close of a real estate transaction. Additionally, seasoned real estate litigators should be used to prosecute and defend quiet title actions.

All information provided on Silblawfirm.com (hereinafter "website") is provided for informational purposes only and is not intended to be used for legal advice. Users of this website should not take any actions or refrain from taking any actions based upon content or information on this website. Users of this site should contact a licensed Texas attorney for a full and complete review of their legal issues.

Quiet Title Actions in Texas | Silberman Law Firm, PLLC (2024)

FAQs

What are the elements of a quiet title action in Texas? ›

In order to seek quiet title, the plaintiff must plead and prove three elements: the plaintiff's rightful ownership of the property, a claim or encumbrance which disputes that rightful ownership, thereby questioning the validity of the title, and a statement that the claim or encumbrance is invalid or unenforceable.

How much does a quiet title action cost in Texas? ›

The cost of a quiet title action ranges from $1,500 to $5,000 for an uncontested lawsuit. Contested (or litigated) quiet title actions can cost much more. Cost mainly depends on the complexity of the title issue and whether the action is opposed.

What is an example of a quiet title action? ›

As an example of a quiet title, there could be a Contractor whose primary job is flipping a house, meaning that Contractor A purchases a home for a low price, makes necessary home improvements, and then turns around and sells the home for a profit.

When would a suit to quiet title typically be filed? ›

It is used when there is a dispute over the title for a piece of property; it is designed to “quiet” claims to the property in question and decide who has ownership. You can also file for a quiet title action when there are breaks in the chain of ownership, such as when you purchase property in an estate sale.

What are the elements of a quiet title action? ›

Necessary Elements of a Quiet Title Claim

A description of the property that is the subject of the action. For real property, the description must include a legal description as well as the street address or other common designation. The title of the Plaintiff as to which a determination of quiet title is sought.

How do you become successful in quiet title action? ›

§761.020], a quiet title action must be well-supported. To file a successful quiet title action claim, you will need to provide a detailed description of the property at issue in the title dispute. Beyond that, you also should gather and organize all relevant property records.

What document shows legal alienation of a property? ›

Voluntary alienation, either as a sale or a gift, must be executed by the use of a deed to transfer title. The deed is a written document that conveys transfer of title in real estate.

Why would a property owner file a quiet title suit quizlet? ›

Why would a property owner file a quiet title suit? A buyer has signed a contract to purchase a property but is uncertain of the condition of the title.

What is the habendum clause in a deed? ›

Usually, the habendum clause states the property is transferred without restrictions. This means the new owner has absolute ownership of the property upon satisfying their conditions (usually payment in full) and has the right to sell or bequeath the property to an heir and so on.

Which party at closing requires the property to be free and clear of encumbrances and requires title insurance and hazard insurance? ›

The lender requires the property to be free and clear of encumbrances, and will require title insurance and hazard insurance to protect the lender's investment (the loan).

What is a granting clause? ›

Granting Clause:

The clause in the deed that lists the grantor and the grantee and states that the property is being transferred between the parties.

What does a writ of attachment do? ›

A writ of attachment is commonly used by a plaintiff to secure a contingent lien on a defendant's property in the event that the plaintiff obtains a judgment against the defendant. There are various types of attachments including garnishment, sequestration and replevin.

What happens after quiet title? ›

Following the quiet title action, the plaintiff will be in full possession of the property in perpetuity, as will be the plaintiff's heirs, and they will also be protected from any further claims of ownership made against the property by other outside entities.

What is the difference between a suit to quiet title and a trespass to try title in Texas? ›

Put simply, a trespass to try title claim is a legal procedure for challenging the ownership of property, while an action to quiet title is an equitable remedy for establishing one's right to ownership of real property against other adverse claimants. (3) the claim, although facially valid, is invalid or unenforceable.

What general jurisdiction is a quiet title? ›

A quiet title action must be brought in the superior court of the county in which the real property is located. This is usually in the general, unlimited civil jurisdiction department of the local superior court.

Which of the following would be a serious cloud on title? ›

Examples of clouds on title include a property's address being misspelled in a deed conveying title, a mortgage lien whose repayment hasn't been officially recorded, a deed which has been signed but hasn't been properly recorded, an easem*nt that has not been properly recorded, unpaid property taxes, a failure to ...

Which of the following would be used to clear a defect from the title records? ›

A quitclaim deed is often used to cure a defect (a "cloud on the title") in the recorded history of a real estate title.

What's the term for a notice given directly to and received by a person? ›

Actual notice is a notice that is given directly to a party or is personally received by a party informing them of a case that could affect their interests.

What can buyers do to protect themselves from title issues when purchasing property? ›

An owner's title insurance policy is what protects you after you buy the property. It protects you in case any liens or claims are filed or discovered after the property becomes yours. Title insurance is a one-time fee often included with closing costs when you buy your home.

Which is not one of the three channels of probate deliberation? ›

Which is NOT one of the three channels of probate deliberation? Interstate proceeding. Which of the following best describes actual notice? It is knowledge received or imparted through direct experience.

What is specific performance in real estate? ›

Specific performance is a remedy in contract law that is most often applied in real estate litigation and disputes where a court issues an order requiring a party to perform a specific act, and to specifically perform according to the terms of a contract.

What is an example of alienation of title? ›

For example, your lender provides you a loan in exchange for the title, which the lender then uses as collateral while you repay the loan. Similarly, your lender uses the alienation clause to ensure that they make back the money you borrowed even when you sell or transfer ownership of your home.

What is an example of involuntary alienation? ›

The most common occurrence of involuntary alienation is when a bank evicts the residents because of unpaid loan balances. In other words, foreclosure is a circ*mstance where one loses their property due to unpaid debts.

What are the two types of notice in regard to title evidence? ›

While there is no absolute and irrefutable proof that a party holds legal title, two forms of title evidence—actual notice and constructive notice—assist in the determination. A combination of the two generally provides the best evidence of real property ownership.

Which of the following persons would file a quiet title action in order to obtain official record title to a property? ›

Typically, an attorney will file an action to quiet the title. You are the plaintiff in this case, since you are the person filing the lawsuit to claim property ownership. The defendants are other persons or parties asserting an ownership claim.

What legal action is taken to resolve all clouds on a title? ›

Clouds on the title are resolved by initiating a quitclaim deed, which releases a person's interest in a property without stating the nature of the person's interests.

Which of the following outstanding issues could an abstract of title reveal? ›

The abstract of title records that transaction history and provides an official provenance. The abstract of title will also record outstanding liens against the property, back taxes owed, or unresolved building code violations.

What is a reddendum clause? ›

red·​den·​dum. -ndəm. plural reddenda. -ndə : a clause in a deed usually following the tenendum by which some new thing (as rent) is reserved out of what had been granted before.

What is a defeasance clause? ›

A defeasance clause is a term within a mortgage contract that states the property's title will be transferred to the borrower (mortgagor) when they satisfy payment conditions from the lender (mortgagee).

What is a testatum clause? ›

Testatum. This is the “witnessing” clause which refers to the introductory recitals agreement, if any, and also states the consideration.

Which of the following parties typically do not attend the closing of a property? ›

Loan officers do not normally attend or conduct the closing process.

Is owner's title insurance required in Texas? ›

Is it required? Texas does not require title insurance. The lender will require you to buy a Loan Policy of Title Insurance to protect their interest.

What is a no liens or encumbrances clause? ›

A “no lien clause” in a construction contract forces a contractor (or subcontractor or supplier) to give up its lien rights in advance of performing the construction work and/or supplying materials on a project. In other words, the contractor promises that it won't lien the project in the event of non-payment.

What is clause 5 of the terms and conditions? ›

Clause 5: Payments and Billing

Websites or apps with paid services, memberships, and subscription plans must contain billing and payment terms in their Terms & Conditions agreement.

What is the exculpatory clause in real estate? ›

An exculpation clause in the loan agreement, mortgage, or note provides that: The borrower has no personal liability for the loan. The borrower's liability is limited to the value of the collateral for the loan (in most cases, the real property).

What is an example of exceptional clause? ›

For example, a company that makes rat poison cannot be sued if a person ingests it and dies because the product is not meant to be ingested. In such cases, exclusion clauses keep the company protected from liability for any and all damages in a certain type of breach of contract.

What is writ of habeas corpus? ›

A writ of habeas corpus orders the custodian of an individual in custody to produce the individual before the court to make an inquiry concerning his or her detention, to appear for prosecution (ad prosequendum) or to appear to testify (ad testificandum).

What is the difference between attachment and replevin? ›

Replevin, also known as “claim and delivery” or “revendication,” is another type of legal recovery process. Unlike attachment, which returns property or pays comparable financial damages to a winning defendant, the process of replevin applies only to physical property taken from a defendant by the plaintiff.

What is the difference between a lien and an attachment? ›

The lien is a legal charge to take ownership of the defendant's property to satisfy a debt. The writ of attachment allows the lien to be exercised should the plaintiff successfully obtain a judgment against the defendant. There are several different types of attachment.

How does a quiet title work in Texas? ›

In order to seek quiet title, the plaintiff must plead and prove three elements: the plaintiff's rightful ownership of the property, a claim or encumbrance which disputes that rightful ownership, thereby questioning the validity of the title, and a statement that the claim or encumbrance is invalid or unenforceable.

How much does a quiet title cost in Texas? ›

With the average cost of a quiet title action being in excess of $4,500 and taking a minimum of 6 months to complete, a quiet title action may not be the best strategy for your investing.

What does a suit to quiet title do? ›

A party with a claim of ownership to land can file an action to quiet title, which serves as a sort of lawsuit against anyone and everyone else who has a claim to the land. If the owner prevails in the quiet title action, no further challenges to the title can be brought.

What does quiet title action mean in legal terms? ›

A quiet title action is a special legal proceeding to determine ownership of real property. A party with a claim of ownership to land can file an action to quiet title, which serves as a sort of lawsuit against anyone and everyone else who has a claim to the land.

What are title disputes over real estate interests which are resolved by a quiet title action? ›

Other grounds for a quiet title action include to settle tax issues with a property; errors in surveying; fraudulent conveyance of the property by coercion or forged deed; treaty disputes between nations; or competing claims by lien holders, reverters, missing heirs, or remainders.

Is adverse possession legal in Texas? ›

The doctrine of adverse possession in Texas protects someone who has honestly entered and held possession in the belief that the land is his or her own, as well as one who knowingly appropriates the land of others for the specific purpose of acquiring title.

What is quiet title in intellectual property? ›

A quiet title action takes place when the claimant of an estate questions other person in the eyes of law so as to know the legit owner of the property. Its main purpose is to settle down the existing claims on the estate, nullifying any vague elements involved in the title, and ensuring transparency.

Who is obligated to ensure that the title to be delivered at closing is free and clear of all encumbrances? ›

Title to Property. At Closing, Seller shall have good, marketable, and indefeasible title to the Property, free and clear of any and all liens and encumbrances, except only for the Permitted Exceptions.

What could defeat an adverse possessor? ›

Good relationships with your neighbors could help defeat a claim for adverse possession. A friendly relationship could lead to a presumption that any use by the adverse possessor-neighbor was permissive, which would defeat the required element of hostility, as will any evidence of actual permission to use the property.

Which action transfers the right title and interest in a property? ›

Conveyance is the act of transferring property from one party to another. The term is commonly used in real estate transactions when buyers and sellers transfer ownership of land, building, or home. A conveyance is done using an instrument of conveyance—a legal document such as a contract, lease, title, or deed.

What is the 10-year adverse possession statute in Texas? ›

ADVERSE POSSESSION: 10-YEAR LIMITATIONS PERIOD. (a) A person must bring suit not later than 10 years after the day the cause of action accrues to recover real property held in peaceable and adverse possession by another who cultivates, uses, or enjoys the property.

How do I fight adverse possession in Texas? ›

Preventing Adverse Possession
  1. Calling the police.
  2. Asking the trespasser to pay rent for the property.
  3. Deterring trespassers with a “no trespassing” sign.
  4. Giving a person a written permission to use the property and getting their written acknowledgement that the property is not theirs.
May 19, 2020

What is 10-year adverse possession in Texas? ›

The default period for adverse possession in Texas is a decade—referred to as a 10-year statute of limitations. That means the true owner of the property has up to 10 years to oust the adverse possessor or terminate their possession.

What are the four major categories of intellectual property describe? ›

Patents, trademarks, copyrights, and trade secrets are valuable assets of the company and understanding how they work and how they are created is critical to knowing how to protect them.

Which of these actions would cause a property to become an reo? ›

Properties become REO when owners default and the bank repossesses them and tries to sell them. The lender, which is often a bank, takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan. These properties generally come at a steep discount but may require extensive repairs.

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