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Tuesday, February 5, 2008

What is Quiet Title?

Here is a strange case that has been resolved. Joe and Jane, names fictitious, purchased a tax sale certificate for a vacant lot in New Jersey. In 1965, Joe and Jane transferred the tax sale certificate to their daughter, Susan. Since 1965, Susan has paid and continued to pay the property taxes for the vacant lot. The Township even placed the property tax bills in Susan’s name. The problem arose when Susan decided to sell the vacant lot. A title search was conducted and revealed current owner “unknown.”

Apparently, when the lot was originally obtained by Joe and Jane, they never foreclosed on the property or took any action to place a Deed in their name. In order to cure this problem, Susan needed to file an action for “quiet title.”

Quiet title is a lawsuit to establish a party's title to real property against anyone and everyone, and thus "quiet" any challenges or claims to the title. Such a suit usually arises when there is some question about clear title, there exists some recorded problem (such as an old lease or failure to clear title after payment of a mortgage), an error in description which casts doubt on the amount of property owned, or an easement used for years without a recorded description. An action for quiet title requires description of the property to be "quieted," naming as defendants anyone who might have an interest (including descendants-known or unknown- of prior owners), and the factual and legal basis for the claim of title. Notice must be given to all potentially interested parties, including known and unknown, by publication. If the court is convinced title is in the plaintiff (the plaintiff owns the title), a quiet title judgment will be granted which can be recorded and thus provide legal "good title." Quiet title actions are a common example of "friendly" lawsuits in which often there is no opposition.

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