Perhaps you have found the perfect home to purchase, and you look forward to the closing.
However, there may be some questions about the property that could delay or even cancel the transaction. Is a quiet title action necessary before you close?
About quiet title
Before you can become the rightful owner of the home you wish to purchase, the title on the property must be free and clear of any encumbrances. If there are conflicting claims or if there is an ambiguity to resolve, a quiet title action may be necessary. This is often referred to as a friendly lawsuit to settle issues that arise during a title search.
There are a number of issues concerning the title to a property that would need resolution before the property changes hands, including:
- Liens for unpaid debts placed by a bank or perhaps a building contractor
- The undiscovered will of a deceased owner may jeopardize your rights as the potential owner
- A boundary dispute or inaccurate survey may require a judge to resolve the matter in a quiet title action
- Forged documents might exist that obscure the rightful owner of the property
- A third party may hold a claim to part if not all of the property due to a previous mortgage or non-financial claim such as a covenant that limits the use of the property
With the help of your attorney and the title company, a title search will bring any issues to light that need resolution in court. Once the cloud on the title goes away, you can proceed to your closing, confident that you will become the rightful owner of the home you wish to buy.