Understanding a Quiet Title Action: Clear Property Ownership Disputes

When multiple parties claim ownership of a property, a quiet title action can be filed to declare the rightful owner. Specifically, this type of lawsuit can create a new link in the chain of title if it has become broken due to errors, liens, or disputes. It may also be used to resolve disputes in connection with encumbrances and security interests held by mortgage companies. Notably, without a clear title, there may be issues when it comes to selling or transferring a property.      

What is a Quiet Title Action?

A quiet title action is a civil lawsuit that is filed in court to clear title to a property. These actions are meant to eliminate ambiguities in the title and clarify who the legal owner is. If a plaintiff prevails in these, they are typically entitled to take full possession of the property — without the threat of further claims made against it. 

When is a Quiet Title Action Used?

A quiet title action is used when the ownership of a property is in question due to a “cloud” on the title. Specifically, a “cloud” on a title refers to any defect, claim, lien, or encumbrance that creates uncertainty about the ownership of a property and impacts its marketability. Examples of a cloud on a title can include errors in public records, unsatisfied liens, a notice of pending litigation, and fraudulent documents in the chain of title. Once the title has been cleared, the property owner regains full legal rights to possess, sell, or refinance the property. 

They are commonly used in the following situations: 

• Easement disputes — Conflicts over the existence or terms of an easement can be settled with a quiet title action.
• Boundary disputes — When neighbors have a dispute over a property line or boundary line, a quiet title action can eliminate confusion over where each party’s property starts and ends.
• Resolve issues with a mortgage lender — If a mortgage has been paid off, but the lender failed to release the lien from the property’s title, a quiet title action can clear the title.
• Adverse possession claims — When a party occupies a property without permission for a certain amount of time, they may claim ownership. In such instances, it may be unclear who lawfully possesses the property and a quiet title action may be necessary to clarify ownership.
• Estate sales — Sometimes, a title company may uncover unknown liens and security interests when an estate is being distributed. While any balances to mortgage companies, creditors, or contractors must be addressed prior to closing, a quiet title action can resolve any outstanding liens to allow the closing to move forward.
• Fraudulent conveyance — If a property transfer was fraudulent and causes a break in the chain of title, a quiet title action can remedy the issue.

When a quiet title lawsuit is filed, it is like any other civil case. The complaint must be filed in the appropriate court and notice must be served on the defendants. If the defendants do not respond to the complaint within a certain amount of time, a default judgment will be entered in favor of the plaintiff. If the defendants do respond, the case would proceed through the litigation process — or settle out of court. 

How Long Does it Take?

The length of time a quiet title action can take depends upon the facts and circumstances of the case. Simple cases can take just a few months to settle. More intricate matters that require litigation may take months or even years to resolve, based on how much discovery is needed, the court’s calendar, and whether the case proceeds to trial. 

What is the Cost ?

The amount a quiet title action will cost can vary based upon a number of factors, including the complexity of the case and whether the matter is contested. Simple actions that can be settled without the need for full litigation may cost only a few thousand dollars to resolve. However, if there are complicated defects in the chain of title and several claimants are involved, more legal work may be necessary, and the costs will likely increase.   

Contact an Experienced North Dakota Real Estate Attorney

Quiet title actions are highly nuanced — and it’s essential to have a diligent real estate attorney by your side who can protect your rights. Located in Fargo, Fremstad Law offers trusted counsel for a wide range of real estate matters in North Dakota and Minnesota. We welcome you to contact us online or call 701-401-9220 to learn how we can assist you.