A clear title is important when it comes to buying, selling or refinancing real estate. Disputes over property ownership, liens or errors in title records can inspire legal complications that must be resolved before a transaction can proceed.
Title disputes may arise as a result of various issues, including boundary disagreements, competing claims of ownership, unpaid liens or mistakes in public records. Fortunately, several legal opportunities to resolve these disputes and establish clear ownership are available to those affected by them.
Title searches
One of the first steps in resolving a title dispute involves conducting a thorough title search. A skilled legal team can review public records to identify any claims, liens or errors that may affect ownership of particular property. If a problem is found, the parties involved must determine whether it can be resolved through documentation, negotiation or legal action.
Negotiation
In many cases, title disputes can be resolved through direct negotiation between the parties. If an issue arises from an unclear boundary, conflicting ownership claims or an unpaid debt, for example, the involved parties may reach an agreement without going to court. For example, if a previous owner still has a claim on the property due to an overlooked lien, paying off the debt or obtaining a lien release may resolve the dispute.
Filing a quiet title action
If negotiations do not resolve a dispute, a quiet title action may be necessary. A quiet title lawsuit is a legal process that asks the court to determine rightful ownership of the property. This type of lawsuit is often used when there are conflicting claims of ownership, missing heirs or boundary disputes at issue. Once the court issues a judgment, it establishes clear ownership and removes any competing claims.