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Can A Quiet Title Action Disrupt A Real Estate Transaction?

A dispute can arise along any axis of a real estate transaction. Typically, commercial real estate transactions are more complex based on numerous moving parts and a variety of involved parties. While a disagreement might center on environmental issues, contract disputes or boundary discrepancy, one legal action that can arise is a “quiet title action.”

An action to quiet title is essentially a lawsuit brought to establish a party’s title to real property. The goal of this action is to eliminate – or quiet – any challenges made against the title. With the complexity of many commercial real estate deals, it is not uncommon for a title search to uncover a dispute. These disputes often must be resolved in court.

What Is A Quiet Title?

Essentially, it’s a very straight-forward concept. There are several situations that occur during the purchase or sale of real estate that will need to be addressed quickly and efficiently. When it appears that more than one party has an interest – or claim – to a title, you can file a suit to quiet title and resolve any issues. The purpose of the action, therefore, is to quiet any disputes or challenges.

For example, consider that a seller of a property had proceeded through the transaction process nearly to the end but passed away before the sale could be finalized. Through the probate process, it is found that the seller actually left the property to his nephew in a will. In this scenario, both the purchaser and the nephew have a valid claim to the property. A lawsuit to quiet title would be instrumental in clearing up any confusion and allow the appropriate party to assume ownership of the property.

When proceeding through a real estate transaction, it is wise to seek the counsel of an experienced attorney. Title issues, boundary disputes or other contract disagreements can seem to appear out of nowhere. With a lawyer by your side, however, you can often anticipate issues and act quickly to resolve them.

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