What Is a Quiet Title Action?
A quiet title action is a civil suit filed in order to remove actual or potential irregularities or “clouds” on a property’s title. A successful quiet title action perfects a property owner’s rights to a property by removing issues concerning ownership, liens, and other matters affecting title to a property. It ensures that the owner has title to the property that is both insurable (acceptable to a title insurer) and marketable (title that a prudent, educated buyer in the reasonable course of business would accept).
Do I Need to File A Quiet Title Action After Acquiring a Tax Deed?
Because tax deeds carry an inherent risk of being declared invalid if the tax deed proceedings are later determined to be defective, and because this determination can be made many years after the tax deed, tax titles are not automatically marketable. A title based on a tax deed that has been of record for more than 20 years is considered marketable under most circumstances. If, however, a tax deed has been of record for fewer than 20 years, most subsequent purchasers, lenders, and title insurers will not consider the title marketable and will require the tax deed holder to obtain a judgment quieting title in the holder before relying on the tax title.