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What is a quiet title action and how does it work in real estate?

On Behalf of | Aug 31, 2021 | Real Estate Law

If you want to buy or sell property in New York, you may want to file a quiet title action depending on the situation with the property’s title. It’s important to know what a quiet title action is and how it works. You’ll also want to know when it’s commonly used in the real estate industry.

What is a quiet title?

A quiet title is something permitted through real estate law to clear the title to a property. Usually, it comes about when there are disputes or multiple claims surrounding the property. It’s also relevant when there are defects in the existing title to the real estate property. Filing a quiet title action can, essentially, quiet those issues and clarify the ownership and any problems related to the title.

When is a quiet title used on real estate property?

Per real estate law, a person can file a quiet title action to settle issues such as disputes on property ownership or on the title itself.

Sometimes, in real estate investing, a quiet title action can be used once a property has been bought through the sale of a tax deed. A tax deed sale can cancel out all other previous liens on the property and transfer it from the old owner to the new one after the sale is finalized. However, in this scenario, there may be an issue with the property’s title. A quiet title action can clear up that problem.

Investors may also file a quiet title action when a property’s ownership is transferred to someone else. The action can clear up any defects in the title.

What are more facts about quiet titles?

A quiet title action is filed in the court by the plaintiff. The defendant subsequently receives notice of it and is given a period of time to respond. If the action is contested, the matter goes to court to be settled. However, if the defendant doesn’t respond to the action, the title is cleared in favor of the plaintiff.

If you have a dispute over a property or its title, filing a quiet title action may be the best way to resolve things.