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Quiet Title Action Explained - By Saen Higgins
A quiet title action is a circuit court lawsuit that is filed to settle the title to a property. So, why do tax deed investors potentially need a quiet title action? Well, when you purchase a tax deed, the county transfers the property to you using essentially a quit claim deed process. The county is passing on their interest and are not guaranteeing that the title is clear. This makes it difficult to get title insurance from a title company.
Do you have to get title insurance? No, but if you plan on selling it on the open market any time soon you’ll likely have to, or facilitate a buyer doing so.
You’ve probably heard us mention Tax Title Services. Their process is a little different than the quiet title action process, and I encourage you to call them and ask about it. Today I’ll continue to discuss quiet title actions however as the topic is one that is often asked about.
A quiet title action will settle any potential ownership disputes and will clarify as to who is the owner. It will also show that there are no outstanding liens, or ‘clouds,’ and that there are no defects on the title. A defect is a break in title, or a potential threat for the current owner to claim full rights to the property. A quiet title action can do a lot for you as someone who purchased a tax deed. It will protect you and allow you to move forward with title insurance, which will further protect you and your investment.
Legal jargon can be confusing, but as an investor it’s worth working to understand it. If you need further clarification on quiet titles, take the time to research them online. Call an attorney and speak with them about the process, or touch bases with someone who has utilized one before.
Saen Higgins is the Co-Founder of US Tax Lien Association. He is one of the world’s foremost authorities on the subject of investing in Tax Lien Certificates and Tax Foreclosed Properties. He has been training and speaking internationally for over 25 years. Saen is passionate about sharing his philosophies on real estate investment and creating financial freedom. His extensive knowledge in the field of self-directed retirement accounts has changed the quality of life for thousands and the way they invest. Saen’s devotion to helping people creates true financial independence and is only matched by his business partner, Tony Martinez.