March 9, 2021 | AtoZ Markets – The term b usually comes hand in hand in real estate discussions. Real estate is a type of real property about land and its permanent attachments such as human-made improvements like construction and building. Natural enhancements like trees, water forms, and the like are included but not vehicles, equipment, and devices since they can be detached.
Any real estate property demands a clear title; that is why one seeks a quiet title first. A clear title is free from disputes, liens, and levies over the property’s ownership. These are called clouds, and the action to quiet the title is a smart next step.
Clouds, liens, and levies
Different forms are representing clouds, but they are almost all the same. A lien is a legal right used to secure an asset. Creditors use this as collateral or security to clear a debt. A levy is also a means to get a payment of a debt by tax authorities or banks. These usually happen when an individual fails to complete an obligation like paying rent or finishing a loan plan.
Quiet title action
A quiet title action intends to find out the real owner of a title in a legal process. This legal action usually happens when the rightful owner is not fully determined. A claimant tends to challenge the person who claims the title. This problem usually occurs when a person dies, and he or she has several heirs or inheritors, misunderstanding in mortgages, or when a house or a property remained unoccupied for many years. However, this move is not all it takes to protect a current owner from the previous ones, but it will surely help.
Real estate fixers or a house flipper can be an excellent example to understand quiet titles better. This professional job involves buying a very cheap house then goes on ahead to renovate, improve, and make it look brand new since they were already previously owned. In most cases, these owners usually failed to pay entirely and were forced to move out of the house. This very reason makes house flipping a challenging profession since you must be keen and knowledgeable about buying a real estate home to profit and avoid any further problems for the new owner.
So how does a house flipper contractor ensure a beautiful home that is clear and free of entangling future predicaments for its prospective buyers? Raising a quiet title action and publishing it out for the public to see. This action usually brings the contractor’s name first above any claimants or previous owners, if there is any.
The publication gives anyone to let themselves be known and claim the property. There is usually a specific and ample amount of time allotted for this. Giving a settlement must immediately be done if someone claims to be the flipped house’s rightful owner. If no one approached after the allotted time, then the house flipper has himself a quiet title to sell in peace to buyers.