If you have an interest in a piece of real property, there may be others who have an interest too. A quiet title action is a lawsuit seeking to have a judge rule that you, under the law, have the rights that you claim.
A quiet title action determines the legitimate owner of a property and or who possesses what interests in it. A quiet title action can ensure no others have conflicting claims to a title or to resolve ambiguity as to who may have what interests. If you prevail in a quiet title action, you can get title insurance, take a loan out with the property as collateral, and convey it free and clear of any cloud on the title.
The plaintiff (the party filing the action) needs to claim an interest in the property and that the defendant (the opposing party) also asserts an adverse claim in the same real property. The court would decide who has what interests if any.
Part of the process is giving public notice of the action. This can attract those who claim, rightly or wrongly, they also have an interest in the property as well. They could ask to be paid for giving up their alleged interests, making the process more complicated and expensive than you expected.
Why should I file a quiet title action?
Here are some situations where a quiet title action may be a good idea:
- A buyer might file a quiet title action on an abandoned house to clear up any questions about potential claims of unknown lessees, lien holders, or heirs
- You buy the property at an estate sale, believing the heirs of the former property owner agreed to sell it, but you can’t confirm all the heirs have relinquished their potential claims
- You believe a mortgage or a tax debt was paid in full, but records can’t be found to prove it
- Your property interest was conveyed through a quitclaim deed, not a warranty deed
- There are boundary disputes with neighbors, survey problems, or a failure to indicate the correct or complete parcel in the deed
- There may be an easement on the property (a shared driveway or a right of way) which can cloud property ownership
- There was, or could’ve been, deed fraud or forgery in the property’s conveyance history
- There are, or may have been, recording errors in loans, easements, liens, and corrected documents
- You were involved in a business that purchased the property. The company is closing, but you’re asserting rights to the property
How does a quiet title action work?
If you want to quiet title against a party with legal title to the property (a court can enforce its rights), you have the burden of proving title by clear and convincing proof, which is a higher standard than by the preponderance of evidence, the usual civil case burden of proof. If the legal title is disputed, factual issues are decided by the preponderance of the evidence.
The judgment is, generally, binding on all parties, known or unknown, who were parties to the litigation and who had a claim to the property. The decision won’t affect the title of a person who you didn’t name as a defendant but:
- Their claim was of record, or
- You knew about it, or
- You reasonably should’ve known about it
Because a lawsuit to quiet title is an action in equity (you want the court to make a decision and take action, not award you money), there’s no right to a jury trial. There’s an exception, and a jury could decide the outcome if you don’t have possession of the property, and you’re trying to recover possession.
Like other legal claims based on civil law, nearly all quiet title actions settle. One party will agree to pay a sum to the other party in exchange for withdrawing their claim on the property.
If I’m a defendant, how can I defend myself?
Depending on the facts of the situation, there could be valid defenses to a quiet title action, including:
- The plaintiff’s claims are factually wrong and the plaintiff can’t meet the burden of proof
- The plaintiff waited too long to file the lawsuit. The applicable statute of limitations would be three to five years, depending on your claims. A similar, but different, defense is laches. Because a quiet title action is an equity action, the doctrine of laches may apply. It’s also a claim the plaintiff waited too long to file, but the reason is to prejudice the defendant. The action was delayed to make it harder for the defendant to fully exercise his rights
- The plaintiff didn’t comply with court procedures and requirements
- The plaintiff shouldn’t proceed because the claims contradict his prior words and actions (equitable estoppel)
- The defendant has a right to occupy the property through adverse possession (the party publicly moved into a property, possessed it, and paid taxes on it for at least five years)
- The state’s statute of frauds requires land sale agreements to be in writing. The plaintiff’s alleged interest is based on an oral, unenforceable, contract to purchase land
How we can help you with a quiet title action
If you think a quiet title may be an option for the property issues you face, you’re a defendant in such an action, or you’ve seen a notice of a quiet title action concerning property you have an interest in, please call AWB Law at (949) 244-4207 today. We can discuss how we can put our knowledge and experience to work for you or your business.
