Quiet Title Action
What it is:
Quiet title action is the name of a legal action intended to ensure that the owner of a property is in fact the real owner and that the property has no other ownership claims on it. To do this is called quieting the title.
How it works (Example):
For example, let's say that Company XYZ is a company that flips houses, meaning they buy them, fix them up, and sell them for a foreclosure or are owned by people who are in dire financial straits. Often, they have liens against the house as a result of back taxes, for example, or unpaid to creditors.. Often, the houses that Company XYZ buys have been in
Accordingly, when Company XYZ buys a house, it brings a quiet title action by asking a court to rule that Company XYZ's title is superior to any other claims on the title to the property. Often the action is published in the local paper or other publication to ensure that all parties have a chance to come forward and to allow the court to say that Company XYZ's ownership claims are superior to claims from all other known and unknown parties. This solves anywith the title once and for all, ensuring that Company XYZ owns the house free and clear before it invests a bunch of into renovations.