Quiet Action Title in Real Estate Law

by Anthony J. Cetrangelo on Dec. 15, 2017

Real Estate Real Estate  Real Estate Other 

Summary: What is a Quiet Title Action in Real Estate Law? How Quiet Title Action’s Apply to Tax Deed Sales and Auctions?

When real property is purchased at a tax deed sale auction, many times a Quiet Title Action will be filed next. The reason why a Quiet Title Action will be filed next is because the new owner may have title to the property but may not be able to sell the property without a court order of a Quiet Title.  The new owner may have issues selling the property without a court order of Quiet Title Action because the real property will not be able to be sold free and clear of other encumbrances and liens without it.

Once the Quiet Title Action is completed the title becomes clear because claims of liens are extinguished from the property. Once the real property has clean title the property can be sold because Title Insurance can be issued.  If the purchaser is going to get a loan to buy the real property, then a Quiet Title Action will most likely be required because no lender will give a borrower a loan to buy the property without the issuance of a Title Insurance Policy on the property.

If it is a cash deal and the buyer is willing to forego a Title Insurance Policy on the property, then a Quiet Title Action would not be required in this instance. Another instance in which a Quiet Title Action would not be required is if four years has lapsed since the time of the purchase of the property at the tax deed sale auction. Although, some people do not want to wait for the four-year period to lapse because that means they are not able to sell the land quickly, make profits and move on to their next project.

Legal Articles Additional Disclaimer

Lawyer.com is not a law firm and does not offer legal advice. Content posted on Lawyer.com is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by Lawyer.com. The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, Lawyer.com recommends that you contact a lawyer to review your specific issues. See Lawyer.com's full Terms of Use for more information.