Florida Quiet Title Action
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Tax Deeds Clearing the Title A quiet title action is a circuit court civil action brought forward to remove adverse parties having a legal interest in a property. The objective is to nullify, remove and make void those parties so as to gain insurable title for your tax deed property. It is important to note that while a quiet title action will remove clouds of title you still will not be able to have a title insurance policy issued unless
(A list of common liens can be found in my prior pages.) The common term used for removing these adverse parties is to "remove clouds of title". Quiet title actions are utilized to resolve ownership disputes where a break has occured in the "chain of title" or property ownership is unclear. Some Quick Definitions Chain Of Title: The sequence of historical transfers of title to a property. The "chain" runs in reverse from the present owner back to the original owner of the property. Note:It is very helpful to create a chain of title anytime you are conducting title research for a property. It draws a clear line of ownership. Cloud Of Title: A Cloud of Title is a shadow/doubt cast upon the chain of title by a party who has claimed an interest in a property or one who has claimed ownership or rights. Example: Clouds of title are commonly the result of errors made in recording of deeds. A subdivision may have many units and change of a single number can have consequences: I own Block 212 Lot 10 Unit 20 of Port Malabar Subdivision. I go to the Clerk's Office and record a deed reflecting Port Malabar Sub. Blk 212 Lot 10 Unit 2. When the owner of Unit 2 attempts to get title insurance or refinance the property my conveyance will cast a cloud upon his title. In this instance, the owner of unit 2 contacts me and I rerecord the deed reflecting the correct unit number. OR, the person I granted the deed to contacts me to say he can't obtain financing on the lot or can't get title insurance, then I will also rerecord the deed reflecting the correct legal description. Another example I find is when family members convey property among themselves and it is passed down from relative to relative via quit claim deed. Uncle Jason conveyed the property to his 3 heirs: Jane, James and Bullet "HIS DOG". Jane, deceased, passing her interest in the property to her 2 daughters. Bullet deceased without will. James, living, still holds his interest. Over time the heirs will forget who owns what percentage of the property and may convey more than they actually own, relatives can't be located, some may convey by erronious deeds. Each of these persons, plus heirs to estate of Bullet, now casts a cloud upon the title. The breakdown: heirs of Bullet share 33% interest owned,Jane's duaghters 16.5% interest owned per child,James 33%. Each of these parties would have to be named as Defendants in a quiet title action because each casts a cloud upon title to property. Obtaining a tax deed to a property which has been passed down in this manner via quit claim deed and by probate over generations can add considerable cost and time to a quiet title action. I know from experience, I purchased a tax deed to a property which required a title search and unsealing of a judges personal records dating back 120 years. The person originally conveyed the property from the state was a sitting judge and the mets and bounds were written on paper and later transcribed into a ledger book. The property was subdivided over and over each time by relatives using whatever description they felt was correct. This went on until the heirs were fighting over who owned what and none paid the taxes in 2002 or 2003. If I had hired an attorney to conduct this research and to complete the quiet title action this property could have easily cost $10,000 to obtain the information and have judgment for quiet title granted.
Alternative to the quiet title action is to hold your interest, tax deed, for 4 years while paying taxes and maintaining the property. In the end, if a party does come forward to challenge the tax deed it may still require a quiet title action.
When approaching an attorney for representation of a quiet title action, the cost will be determined on a case by case basis. Typical Case A typical case will meet these criteria for most attorneys: The typical attorney represented quiet title action is $1,000-$1,500 plus costs. The run down on major costs is determined by the county. In Brevard county as an example, my major costs for a typically single property quiet title actions are: legal ad-$300.00, recording fee-$400.00, return receipt postage for 5 defendants x 5 mailings-$80.00 to $120.00 if all addressed in USA. Note:There has been F.S. and U.S.C. changes which impact: fees, lien superiority and lien revocation. These changes were not incorporated into my site pages but are available as updates found here. I typically hear the total cost of an attorney represented quiet title action to be $1,900-$3,000. If you are seeking a single quiet title action for multiple properties, the cost per property should be greatly reduced. With a single quiet title action encompassing numerous properties there will be one set of pleadings to record, instead of one set for each property. So, your cost for recording will be reduced. Example: Base recording price- 6 or fewer Defendants, civil action $325.00, $15.00 per additional defendant. In short if you combine properties on a single quiet title action you can save money. The document drafting cost should likewise be less. The advertisement cost will also be reduced. I, in advertising a single quiet title action for 3 properties with less than 6 Defendants, expect the ad cost to run $700.00 compared to running 3 legal ads at $350.00 each. The prices quoted are estimates, of my own findings. I, conduct my own title research, draft my own pleadings, record the documents, all of which reduce costs. An attorney may retain the services of: a title company to perform the research necessary for the affidavit of diligent search, a courier to record the documents, a legal aid to draft pleadings, all of which will ad to the cost list for your attorney represented action. I always recommend to new investors that they seek legal advice and representation. I also believe setting up a business entity is a good plan. While I won't get into all of the reasons, your liability can be greatly reduced. Once you are confident by having made some excellent purchases, you can always venture out and self represent your quiet title actions. There is but a single flaw, a corporate entity can not represent itself, pro se, in a quiet title action nor can an appointed officer of the corporation. What this means is that for a quiet title action to ensue pro se, the litigant "Plaintiff", must be an individual, individuals listed within a trust, etc.. So, the easiest course of action if you intend to represent your own quiet title action is to place the tax deed into your personal name. I must say, this is not for the beginner. Make sure you have followed through will all the research, consulted legal and professional service providers and have had a number of successes, before doing this. The risks will be yours to bear if you make a mistake. While an attorney represented single property quiet title action may cost $1,900-$3,000 and typically takes 5-6 months, I can do it faster for less. I have represented myself, successfully completing quiet title actions in under 45 days with the total cost under $700.00. I have completed a single quiet title action comprised of 13 properties for less than the $3,000 noted above. The time required typically depends on judge backlog and how long it takes to get in front of the judge for the hearing. In some larger counties you may be waiting 3 months for your court hearing. In larger counties where the attorney has a favorable presence, many times they can complete the quiet title action faster. The attorney may have outstanding hearing dates for similar cases, so to add another 3 minutes of time on a telephonic hearing, where no party has come forward to object, is not always out of the question. Commonly I find only 1 out of every 15 quiet title actions has a party come forward to challenge the quiet title action and tax deed. In those cases where a party has come forward, in my cases, they have all lost. I do not attribute this to my legal knowledge, I have none. What I do have is a great set of blueprints, a plan and a understanding of this one specific type of action. Many of those parties objecting to the quiet title action have made sympathetic cries which were unfounded in a basis of law. My husband was sick and we forgot to pay the taxes for 3 years is not a good objection; neither were, I am a US Veteran, I will sue you, my attorney said he needs more time, I need more time to retain counsel, this is my fathers property, I paid the taxes but my check was returned, my accountant said he paid, I will burn the property before you get it. While some objections will be allowed a continuance, others were not. The most notable case I know of involved a million dollar property owned by a sports franchise owner who didn't pay the taxes. He didn't get the tax deed invalidated either. I believe, a tax deed can only be nullified when the property owner has proof that the taxes were paid in full with all other costs prior to the tax deed auction bidder paying in full or if the owner can prove he was not properly notified. In the event the tax deed is invalid, the tax deed owner still has rights. I state in the my Complaint, "In the event the Tax Deed be invalidated, Plaintiffs statutory lien for the amount paid for the Tax Deed together with interest, cost of this action, other real estate taxes paid on the property be foreclosed and that the subject real property be sold by the clerk of the court to satisfy said liens". Special Warranty Deed/Quit Claim Deed If you don't have the time required to wait out 4 years to procure clear title or you don't have the funds to peruse a quiet title action, you can convey your right and interest in the property via quit claim deed. While you can't obtain title insurance or offer warranty against title defects, you can still convey your interest in the property. You won't be able to use a traditional realator since they are bound by ethics and most buyers will demand title insurance and a warranty deed. I see local newspaper ads and online auctions all the time for vacant land being sold by quit claim deed or special warranty deed.
Note:The only thing special about a special warranty deed is the amount of money saved by the seller who didn't perform the quiet title action.
Occasionally someone will advertise a property that is a good deal, but normally if the property is being conveyed to you by quit claim, it is likely a lemon. The property is encumbered by superior liens which need satisfying and the cost of a quiet title action will need considering. In many instances the tax deed investor finds out, after the auction, that property is not worth the cost of quieting the title or superior liens exist. As a general rule, I don't buy property via quit claim deed, it is an unnecessary risk. It has to be an incredible deal and I conduct my own title search and then pay a title agent $100.00 to conduct another. The only time I convey via quit claim is when I am selling my interest in the property back to the previous owners who failed to pay the taxes. Other than that, I always conduct a quiet title action on tax deed properties and bid at auction with that cost having been considered.
Want to see what the Lis Pendens looks like for a quiet title action? The Lis Pendens is one of the leading documents recorded in a civil case. It requires us to locate the official records at the Clerk's website. Lets see, How about Okaloosa County? Here is a link to the Clerk's Site.
Quiet Title Action, Florida Research/Okaloosa Lis Pendens
Here is a copy of a quit claim deed I have used Record and Return to:
THIS QUITCLAIM DEED, Executed this ____ day of ______________, 20____, by first party, Seller ______________________________ whose post office address is ________________________________ to second party, Buyer, _______________________________________ whose post office address is _______________________________. WITNESSETH, That the said first party, for good consideration and for the sum of $ _____________ paid by the said second party, the receipt whereof is hereby acknowledged, does hereby remise, release and quitclaim unto the said second party forever, all the right, title, interest and claim which the said first party has in and to the following described parcel of land, and improvements and appurtenances thereto in the County of Citrus, State of Florida, to wit: The property subject to this agreement consisting of____________________________________________________________, having the common address of:_________________________________, County of ___________ State of Florida and having the legal description of: _________________________________________________ parcel id # ______________________________________________.
IN WITNESS WHEREOF, The said first party has signed and sealed these presents the day and year first above written. Signed, sealed and delivered in presence of:
_______________/_____________ Witness Signature/ Printed ______________/_______________ Witness Signature/Printed
_______________________ First Party Signature ______________________ Second Party Signature
STATE OF } On________________________________before me,__________________________, personally appeared___________________________________________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal.
_____________________________ Signature
Affiant: _____Known _____Unknown ID Produced: __________________________
[Seal] ---------------------------------------------------------------- The information found here is my opinion and should not be interpreted or construed as legal or professional advice. No legal or professional advice is being given and the use of this information is at the readers own risk and peril. It is advised that those considering this investment should seek qualified legal and professional services. Have you looked at all the pages in the page progression? If not, go back and look there is very important information you need. Final Tax Deed Note: Never trust a single source for information, it can only lead to a negative outcome.
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Florida Quiet Title Action
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