Buying or selling a real estate property in New York comes with a lot of paperwork. In some instances, the transition is smooth and the sale concludes with minimum hurdles. The parties may experience disputes in other situations. One involves what’s known as a quiet title action.
The meaning of a quiet title action
A quiet title action is a lawsuit brought by a real estate owner to establish their ownership of the property. The goal is to “quiet” any potential challenges to their ownership such as any outstanding liens or easements on the property. There are two main types of quiet title actions: partition actions and adverse possession actions.
Partition actions are filed when there is more than one owner of a piece of real estate and they can’t come to an agreement on how to divide or sell the property. An adverse possession action is filed when someone has been occupying a piece of real estate for a certain period of time and wants to establish their ownership rights.
To start a quiet title action, the real estate owner files a lawsuit in court. They then serve notice to any parties who may have an interest in the property. This includes anyone with a lien or easement. The parties have a chance to respond to the lawsuit.
Thereafter, the court holds a hearing where the real estate owner presents their evidence of ownership to the court. If the court finds in favor of the real estate owner, they may issue an order “quieting” title to the property.
As a real estate property owner, a quiet title action can help you clear up any potential challenges to your ownership of the property. This can give you peace of mind and make it easier to sell or borrow against the property in the future.
Secondly, it may help you get a lower insurance premium, as insurers may view a property with a clear title as less of a risk. Last but not least, a quiet title action can help you avoid any potential legal problems down the road.
If you’re thinking of selling or buying a real estate property, due diligence is essential. Do plenty of research and understand the documents involved.