Is There A Difference Between A Quit Claim Deed And A Quiet Title Action?

Category: quiet title

Is There a Difference Between a Quit Claim Deed and a Quiet Title Action?

In the world of real estate, there are dozens of terms that homeowners, landowners, potential property owners, agents, brokers, and a slew of other people need to know. If a term is used wrongly, it could mean the difference between a landlord holding interest in a property (leased fee) and accidentally handing interest over to their tenants (leasehold), or the difference between a person buying an actual piece of property (condominium) versus investing in a share of a corporation that owns a building (cooperative). There are dozens of terms that sound the same in real estate but that mean two entirely different things. Two of those terms are “Quit Claim Deed” and “Quiet Title Action.” At Cloud Willis & Ellis, we often get inquiries about one or the other, and more often than not, what a client seeks is actually not what they ask for. To clear up all confusion, this post will briefly explain the differences between the two, how to tell which applies to your situation, and why you do not want to confuse the two.

The Difference Between a Quit Claim Deed and a Quiet Title Action

A quit claim deed is a tool that allows a property owner to transfer interest in real property to someone else. You can use this tool to transfer interest in your own property to a family member, loved one, or friend, or they can use the tool to transfer interest into your name. The process is fairly easy, quick, and does not require a lot of legalities. There is generally no opposition that comes with a quit claim deed.

A quiet title action is a tool used to remove a person’s interest from a property. Generally speaking, no one wants to be forcibly removed from their property, making a quiet title action a bit more complicated. A formal lawsuit is involved with this process, thereby requiring more resources—time, money, and knowledge. You can learn more about a quiet title action and how the process works in Section 24-9-8 in the Alabama Housing Code.

How to Know Which Applies to Your Situation

Every situation is different so it is always best to consult with a Mobile real estate lawyer regarding your needs. That said, there is one fairly straight forward way to determine which tool applies to your situation: answer the question, Is the transfer of property contested? If the answer is no, a quit claim deed may suffice; if the answer is yes, you may have a legal battle on your hands, in which case you would need to file a quiet title action.

One example that illustrates the differences between the two is as follows:

Post-Divorce

Jason and Amber get a divorce. Amber “won” their beach front property in the divorce, but the judge’s decision does not mean that Jason’s interest in the property has been removed. In order to remove his ownership interest, one of two things must happen:

Jason must sign over his ownership interest in a quit claim deed; or
Jason refuses, or disappears, or otherwise makes it difficult for Amber to obtain full ownership interest in the property. Amber must then hire a real estate lawyer, who would likely file a quiet title action to help his client remove Jason’s ownership interest in the property. The process will require adhering to many different statutes and notices and can take up to five months or even longer, depending on the circumstances of the case.

The end result is the same—one person ends up with ownership interest in a property and one without—however, the two processes are very different. Depending on who you are in the situation—“Jason” or “Amber”—it could be detrimental to your interests to confuse the two.

Ready to Transfer Ownership?

Whether you want to transfer ownership interest to someone else, allow someone to transfer ownership interest to you, or would like to remove someone’s ownership interest from one of your properties, it would be wise to retain the help of a knowledgeable real estate attorney. At Cloud Willis & Ellis, our team is ready to help you find the best option given your unique circumstances. Contact our team today for immediate legal assistance.

Quiet Title Actions – Removing Doubt About Property Ownership

Buying a piece of property nearly always involves a title search to ensure there are no unsettled issues with the property. The title search entails gathering documents showing the property’s history to determine several key issues including whether the seller has interest in the property that they are able to sell, whether there are any restrictions on the use of the land such as covenants or easements, and whether there are any liens on the property such as mortgages or taxes that would need to be satisfied. If all goes well, the title search turns up nothing unexpected and no issues are present that would prevent the sale from occurring. What if, however, there is uncertainty regarding one of these issues?

Following The Procedure

When uncertainty exists about any of these important issues, a lawsuit may be filed within the court to settle the issue. Known as a quiet title lawsuit, the action does exactly that – it quiets any issues about the title and the ownership of the property. To begin this process, notice is required to be recorded within the legal system, which sets forth information including the name of the taxpayer affected by the tax sale, the names of anyone else who could claim an interest in the property, the property’s legal description and street address, contact information of the authority, and statements regarding the quiet title proceedings.

Common Scenarios Requiring Quiet Title Action

There are any number of situations in which it makes legal sense to file a quiet title lawsuit. One is in the case in which there is some cloud over the title, such as when the ownership is unknown or not well established, or when there is a question of tax delinquency associated with the property. Other reasons may include when you want to dispute someone’s claim that the property is subject to a mortgage or lien, or when there is uncertain about the property’s boundaries, or if there is an easement on the property that is being used but was never properly recorded. Essentially, any time there is a question about ownership of, debt on, or usage of a piece of property, filing a quiet title action is the best way to prevent the chance that someone will dispute the legality of your ownership of the property in the future.

Are You Considering Filing A Quiet Title Lawsuit? Cloud & Willis, LLC Can Help

If you are looking at buying a piece of property, you will want to ensure you are making a wise investment. An experienced real estate attorney can help you accomplish this by reviewing the transaction from the beginning and handling any legal issues that need to be resolved as a part of the process. The Birmingham real estate attorneys at the office of Cloud Willis & Ellis have helped clients with a wide range of real estate matters including quiet title actions and can help to make sure your transaction is a smooth one. Contact the office of Cloud Willis & Ellis today and let us help you with your real estate needs.

Quiet Title Actions: Legal Proof That Property Belongs To You

Imagine that you buy a house, you move into that house, and you’ve been living in that house for a few years when someone knocks on the door (or more likely writes you a letter) and informs you that they own the house that you bought and paid for. What do you do? Given the circumstances described in this hypothetical you would likely want to file a quiet title action in order to legally establish that you own the property in question.

What Is A Quiet Title Action?

A quiet title action is a lawsuit that is designed to establish ownership of real property (aka land and any buildings attached to that land). This type of lawsuit is filed when there are two or more parties that claim to own a particular parcel of land. This actually happens more often than you might imagine. For example, multiple parties may claim ownership if a new possessor claims that they have acquired ownership over the land via adverse possession, if a seller fraudulently sold a parcel to two different buyers by using a forged deed, or if a bank failed to clear title after the mortgage on the property was paid off. There are many diverse situations in which it may be advantageous to file a quiet title action, but the idea is always to have a court determine who legally owns the property in order to ‘quiet’ all other claims.

While many states have their own quiet title statutes, most require the claimant to show the same two things. First, the claimant must be able to show that they have a legitimate claim to the property. Second, they must prove that they took possession of the property in good faith. If the claimant is able to show that their claim to the property is valid, then the court will grant an action to quiet title announcing that the claimant’s claim to the property supersedes anyone else’s claim of ownership.

The Notice Requirement

When someone files a quiet title action how are parties with potentially adverse claims of ownership notified about the lawsuit? Generally, states require parties who may have an adverse claim to be notified of the quiet title action. For example, Alabama’s quiet title action statute for tax delinquent properties, contained in section 24-9-8 of the Code of Alabama, outlines a very strict notice requirement. The notice required for these actions for must include:

The name of the taxpayer whose interest was affected by the tax sale,
The name of any other party that a title search reveals may claim an interest in the property,
A legal description of the property,
The street address of the property,
The name and number of the authority,
A statement that the property is subject to quiet title proceedings, and
A statement that any legal interest in the property may be extinguished during the proceeding.

In order to ensure that you comply with your state’s quiet title action notice requirements it is always a good idea to consult with a competent attorney for legal counsel.

Need Legal Advice?

If you live in Alabama and would like to file a quiet title action so that you have a legal proof that a particular parcel of land belongs to you, contact Cloud Willis & Ellis, LLC today. Our experienced real estate attorneys are located in both Birmingham and Mobile and are happy to discuss your legal options with you.

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