Quiet Title Action

A quiet title action is a legal proceeding filed in court to establish definitive ownership of a property and eliminate any competing claims, liens, or clouds on the title. In tax lien and tax deed investing, quiet title actions are commonly pursued after acquiring a property through tax sale foreclosure to ensure the investor has clean, marketable title.

The need for a quiet title action arises because tax deed sales and tax lien foreclosures may not automatically extinguish all prior interests in a property. While many junior liens are eliminated, questions may remain about the validity of the tax sale process, whether proper notice was given to all interested parties, or whether certain types of liens survived the sale. A quiet title action resolves these uncertainties through a court order.

The quiet title process typically involves filing a complaint identifying all known and unknown parties who may claim an interest in the property, publishing notice in local newspapers, and potentially serving individual notices to identified parties. If no one contests the action within the specified period, the court issues a judgment quieting title in favor of the plaintiff (the investor).

Quiet title actions add cost and time to a tax deed investment — typically ranging from $1,500 to $5,000 in legal fees and taking several months to complete. However, they are often essential for obtaining title insurance and being able to sell or finance the property. Many experienced tax deed investors include the cost of a quiet title action in their initial investment analysis to ensure the deal still makes financial sense.