Introduction:
A legal action to “quiet title” aims to establish legal rights regarding legal title to a property, effectively resolving any disputes or “clouds” on the title. A quiet title action is a lawsuit filed in court to resolve these disputes and clarify who holds rightful ownership of a property. This is particularly important in real estate, where full establishment of legal title is crucial for ensuring the marketability and transferability of property. Assuming the correct notice is given to all possibly interested parties, the court’s ruling on the action establishes all legal rights to the property for all time.
This article shall discuss the basic law and practicalities of a quiet title legal action in California.
The Basic Law:
A quiet title action is a legal proceeding that determines the rightful interest in real property when there is uncertainty about the title. The action is filed in the county where the property is located, and it requires a court to rule on the validity of existing title and/or competing claims to the property. Under California law, the quiet title action procedure is governed by specific civil codes, including Cal. Civ. Code §§ 760.040, 760.050, and California Code of Civil Procedure § 761.020. These codes outline the necessary steps and requirements for a quiet title action. It is possible to bring a quiet title claim in counties other than the one where the property is located. However, if the defendant challenges it then the action may be moved to where the property is actually located (issues regarding property are normally in the county in which the property is located and that is termed “in rem” jurisdiction).
Quiet title actions are usually filed in the following circumstances:
Boundary disputes as to property lines or encroachments.
Fraudulent conveyances: Claims involving forged deeds or transfers made under false pretenses.
Adverse possession when someone occupies a property and claims ownership after a statutory period.
Easement disputes: Issues with access rights, such as prescriptive or implied easements.
Liens or encumbrances: Unresolved tax liens, mechanics’ liens, or other recorded claims that affect title.
Errors in title or legal descriptions: Mistakes in recorded documents or surveys that create confusion over ownership.
Inheritance disputes: Competing claims to property from heirs or beneficiaries (though these are often decided in probate court in Will contests or petitions for instructions.).
Foreclosure-related claims: Clarifying title after allegedly improper foreclosure proceedings.
Co-ownership conflicts: Disputes over shared ownership, such as when one party wishes to sell or partition the property.
And virtually any other dispute in which clear title to property is endangered.
Note that Title Companies, whose title insurance is vital to any transfer of property in the United States, will not usually provide title insurance if there is any cloud on title or if a possibly interested party objects. They will often require the parties in dispute to commence a quiet title action and achieve a judgment from the Court prior to granting clear title.
The Action:
The process is similar to any other civil legal action brought in California with the difference that all parties who may have a claim on the property must be named and served to achieve relief.
1. The Complaint:
a. The Plaintiff must verify the Complaint and name all Defendants. The Complaint must include:
/1/ A legal description and street address of the property.
/2/ The plaintiff’s ownership interest and claims to the property.
/3/ Any adverse claims or interests to be addressed.
/4/ The date for which the determination of title is sought.
/5/ A prayer for judgment to quiet title against adverse claims.
b. The Plaintiff next files and serves the Complaint. The quiet title action must be filed in the superior court of the county where the property is located. After filing, all named defendants must be served with the complaint. If a defendant cannot be located, service by publication may be permitted, but this requires court approval and documentation of reasonable efforts to locate the party.
c. Record a Notice of Pendency of Action (Lis Pendens). A notice of pendency of action, also known as a lis pendens, must be recorded with the county recorder. This document notifies potential buyers or lenders that the property is subject to litigation, effectively preventing its transfer during the action. This is vital since the action may take a year or more to conclude and if a third party buys the property during that period that party may be a “bona fide” purchaser and have the right to own the property.
d. Respond to counterclaims or defenses. Defendants may assert counterclaims or defenses, such as alleging superior ownership, fraud, or other legal theories. Be prepared to respond with evidence and legal arguments. Discovery (depositions and interrogatories) is often utilized in litigation to determine the validity of claims and counterclaims.
e. Trial or Settlement. While most quiet title actions are resolved through settlement, some proceed to trial. At trial, both sides present evidence, witness testimony, and legal arguments. The court evaluates the case and issues a judgment based on the facts and applicable law.
f. Obtain and Record the Quiet Title Judgment. If the court rules in your favor, it will issue a quiet title judgment. This judgment establishes your ownership rights as well as any other rights to the property and establishes for all time clear ownership rights. Once recorded with the county recorder, the judgment binds all parties named in the action and provides certainty to future buyers or lenders.
Statute of Limitations and Laches:
Statute of Limitations is the length of time that a party has to file suit. If one fails to file within the statute of limitations, one is barred from seeking legal redress. Laches is an equitable version of the statute of limitations and allows a judge to consider "fairness" in determining if an action should be barred. The timeframe to bring a quiet title action depends on the underlying claim. For example, a claim based on fraud has a three-year statute of limitations, while adverse possession claims require a five-year possession period.
Often, the statute of limitations does not run against a party in possession of the property. However, undue delay in filing a quiet title action may result in the claim being barred by the doctrine of laches if the delay causes prejudice to another party.
Conclusion:
An elderly real estate attorney known to the writer once quipped that the Title Companies are the Gods of real estate transactions. Absent their willingness to provide title insurance, one cannot transfer or borrow on property. Since they are effectively an insurance company guaranteeing the validity of title to all parties, it is no surprise that they often insist upon a quiet title action to establish clear title.
And the sooner a party brings the action, the better. Not only are there statute of limitations and laches issues, but if one has to prove one’s case by means of witnesses, it is vital to cement their testimony while the witnesses are still available and have recollections of events.
Key also is to file and record the Lis Pendens. Each new party that may have a claim greatly complicates the matter and endangers the successful conclusion of the case. And unless a third-party buyer has actual notice or a Lis Pendis is recorded, that third party may actually end up owning the property with the court grimly commenting that it was up to you to take those steps necessary to avoid that.
If you are going to seek a quiet title action, the sooner, the better.