QUIET TITLE ACTIONS
What is a "Quiet Title Action?
An action to quiet title is a court procedure that is required in order to get a court order confirming that the procedures undertaken by the clerk of court in performing the tax deed sale were done in accordance with Michigan Statutes. When property is sold at a tax deed sale, the effect is to eliminate any claim that the prior owner or mortgage holder or lien holder may have to the title. When a successful bidder at a tax deed sale obtains the deed to the property, it should be free and clear of any other liens or encumbrances, except for certain excluded liens for municipalities, etc. Unfortunately, the buyer of the tax deed property does not have “marketable title” unless a Quiet Title action is performed.
Why is a Quiet Title action important?
The buyer of a tax deed property cannot obtain title insurance bought at a tax deed sale until a Quiet Title action is performed. Without title insurance, it is difficult to sell or finance the tax deed property. In a standard Michigan real estate transaction, the buyer will insist upon title insurance in order to insure the title to the property for the amount of the purchase price. Likewise, if a successful bidder of a tax deed property wants to refinance the property, a lender institution will require title insurance to insure title for the mortgage.
How long does a Quiet Title action take?
Before an action is filed, a title search is performed. Once all of the defendants are identified and have been served with the action, they each have 21 days to file a response from the date they are served. If no responses are served, they will be defaulted and a Motion for a Default Judgment is brought before a judge. When all of the defendants are easily located, the average time to resolve an action is estimated at 60 days from date of filing to entry of the final judgment. This is also true when the matter is uncontested.
A quiet title action becomes more time consuming when the location of all of the defendants to be served cannot be located. In that case they must be served through publication in a newspaper of general circulation for 4 consecutive weeks, which adds 1 month of time and an additional third party publication fee (averaging about $300).
Do I have to complete the Quiet Title action before selling or refinancing the property?
More often than not, an action needs to be filed. If all parties can be located, and the attorney can coordinate lien discharges or releases from all of the defendants, then it will resolve the matter much faster.
What is the cost of a Quiet Title action?
Our flat attorney fee for an uncontested Quite Title Action is $1525, plus the court costs, service of process, publication and other costs related to the lawsuit. Generally, the filing fee is $175, the title search is $200, the cost of publication can range anywhere from $125 to $400, and service of process on each of the defendants varies.
Our attorneys can provide a more detailed estimate of the cost for your quiet title action once we examine a title search.
What do I typically need to pursue to an action to quiet title?
We need a copy of the tax sale deed along with the property address, name and contact information for the buyer. We also require a complete title search. (We order the search for you upon being engaged by you.) Finally, any and all other documents that you believe are helpful for the file.
Is my attendance at court necessary?
Generally, no. With few exceptions, our clients do not need to appear at any hearings.
Do you want to know more, we're happy to chat. Contact David Soble and his team at 888.789.1715.
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So, what questions should you ask when you need to hire a qualified attorney?
Here are some suggested questions you can use when interviewing a real estate attorney:
1. What is your Martindale Hubble or AVVO Rating?
2. How many years have you been in practice?
3. Do you have testimonials of past clients that I can review?
4. Can I review the most recent articles on real estate that you have written?
5. Can you provide me with any names of your current clients for references?
6. How do you bill your clients? Hourly or a flat fee?
During the interviews, also discuss what types of investments you'll be making. If you suspect any hesitation, they might not be a good fit.
There are several factors to consider when you make your final hiring decision. Which attorney has the most experience? Do they seem professional and dedicated? Do I see myself working with this real estate attorney on future real estate deals?
Finally, conducting research on the prospective real estate attorneys can provide helpful information. Check the articles, testimonials, white papers, and ads they've run; it can shed light on who they are and their business style.
In Metro Detroit, and throughout Michigan, property owners entrust David Soble
and his Proven Resource team with their real estate issues - reducing legal risks and financial exposure.
