Quiet Title Action in Real Estate Law
What is a Quiet Title Action in Real Estate Law? How Quiet Title Action’s Apply to Tax Deed Sales and Auctions?
Quiet Title ActionWhen 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.
Clear Title to SellOnce 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.