Real estate professionals sometimes talk about “chain of title.” This means a piece of property has passed from one owner to another through the years, with each owner having sole title to it for a while, and then passing on that title to the owner after them.
Ideally, all properties would have a neat chain of title, but the chain can get tangled and confusing over the years. In some cases, a buyer can purchase a piece of real estate only to learn that someone else has a claim to it.
One way to resolve questions of ownership is through a type of lawsuit known as a quiet title action.
When ownership is contested
Many situations can lead to questions about title. Some of the most common include:
- Liens: In some cases, contractors can obtain a lien on a property. For instance, if an owner hires a builder for an expansion and then fails to pay them, the builder may obtain a lien on the property in order to secure payment. This means the builder has an ownership stake in the property.
- Inheritance: Title questions can get complicated when an owner dies and passes on their property to their family members. This means each of their heirs has an ownership stake in the property. If one of these heirs sells the property without first getting an OK from all the other owners, it can lead to a difficult problem.
- Long periods of vacancy: In some cases, a property goes unoccupied for a long period of time. During this time, other parties can try to purchase the property, and may even gain legal interests in the property.
- Disputes with neighbors: Boundary disputes and easements can lead to questions about title. For instance, if a neighbor has been using a path across part of the property for years, they might have developed a legal right to an easement. This doesn’t mean that they have title to the entire property, but it can mean that the new owner does not have right to use the entire property as they please.
How a quiet title action works
In a quiet title action, the plaintiff essentially asks the court to recognize them as the owner with clear title to the property, and to strike down any competing claims to ownership. Other claimants are listed as defendants, and they have the chance to argue their case in court. Some of these claimants may choose to settle separately, or they may contest the action.
If successful, the plaintiff is said to have “absolute” title to the property.
This can be a difficult process, but it may be necessary in situations involving contested ownership.