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.
