Purchasing a house, a vacant parcel or commercial property represents a big investment. Every tax deed purchase will have a cloud on the title and buyers will either need to wait the statutory period of 4 years or resort to more immediate remedies such as a quiet title action to secure their ownership rights.
Understanding Title Issues
Clear title is a legal term that signifies the absence of any liens, encumbrances, or disputes regarding ownership of a property. When a property has a cloud on the title, it means that there is legal uncertainty about the rightful owner. This, of course, can lead to a smorgasbord of challenges, including costly legal battles.
Title issues can stem from various sources, including:
Title issues can stem from various sources, including:
- Tax Deed Purchases: The former owner is not completely divested of his/her interest when you take title by tax deed. This creates a cloud on the title.
- Unresolved Liens: Unpaid debts, tax liens, or unpaid contractors may result in cloud on the title.
- Incorrect deeds: Instances of deeds not being property completed, marital status of the grantor or grantee, and lack of required number of signatures or no notarization can all cloud the title.
- Estate Issues: In cases of inheritance or probate, disputes among heirs or unclear wills can create title complications.
- Recording Errors: Mistakes in public records, such as misspelled names or incorrect property descriptions, can lead to title disputes.
The Role of Quiet Title Actions
If you’ve purchased a property through a tax deed auction, you will need clear title. Even if you decide to keep the property for yourself, it’s a good idea to get clear title. We've seen buyers try and tred solo through the aftermath of legal battles, financial losses, and challenges in selling the property and it becomes significantly more costly when you try to deal with problems after they become legal battles.
This is why quiet title actions exist.
Anyone who has a legal interest in the property is named in a quiet title action. It’s a chance for them to “speak now or forever hold your peace.” Once the quiet title action is complete they are forever barred from bringing any legal action against the property or you.
This is why quiet title actions exist.
Anyone who has a legal interest in the property is named in a quiet title action. It’s a chance for them to “speak now or forever hold your peace.” Once the quiet title action is complete they are forever barred from bringing any legal action against the property or you.
- Legal Clarity: A successful quiet title action provides legal clarity, confirming the rightful owner and removing any doubts about who owns the property.
- Marketability: You cannot get a warranty deed or title insurance on the property without first waiting the statutory period of 4 years or obtaining a quiet title action. If you want to sell the property you must have clear title.
- Peace of Mind: Property owners can enjoy peace of mind knowing that their ownership rights are legally recognized and protected.
Next Steps
Remember, a clear title is not just a legal formality but a fundamental prerequisite for enjoying the benefits and security of ownership after your tax deed purchase.
If you have purchased a tax deed property or have a title issue with your property, call Wilkes & Mee. We are quiet title attorneys and can help you through the process of obtaining a clear title for your property as fast as possible.
If you have purchased a tax deed property or have a title issue with your property, call Wilkes & Mee. We are quiet title attorneys and can help you through the process of obtaining a clear title for your property as fast as possible.