In the quiet title suit, the developer’s attorney would describe all of the title defects. The developer could likely fix all of his title problems at once with a quiet title action. The real estate developer cannot receive marketable title or obtain a title insurance policy on the Family Farm until these defects are cured. In other words, there were several technical defects in the chain of title. The developer ran title work and discovered: (1) record title was still in Great Grandpa’s name (2) the 10-acre tract was missing from the legal description and (3) the neighbor never formally transferred title to his wife.
At this point, the neighbor’s wife decided to sell the family farm to a real estate developer. Instead, he simply told his wife that she would inherit the Family Farm. Just like Great Grandpa, the neighbor did not have a formal will. Not only that, the kids drew up the deed themselves, and they accidentally left out a 10-acre tract of land in the middle of the Family Farm. The neighbor did not discover that record title was still held by Great Grandpa. A few years later, the kids sold the Family Farm to a neighboring landowner. However, record title was still held by Great Grandpa. Instead, his kids just divided up the Family Farm based on his oral instructions. Great Grandpa died owning the Family Farm. Here is an example of how the chain of title can be broken, even when everyone knows who really owns the property: What do we mean by “technical title defect”?Ī technical title defect is a break in the chain of title that causes problems with selling or refinancing the property, even though there is no real challenge to ownership. Reason #1: Quiet title to fix a technical title defect. Two or more parties are claiming to own the same real property. There is a true dispute over who owns real estate. But due to conveyancing errors, the title records are defective, making it hard to sell or refinance the property. There are two main reasons why someone would file a quiet title suit: Why Would a Property Owner File a Quiet Title Suit?
In other words, the chain of title must be fully intact. If there is the slightest doubt or confusion as to ownership, title companies will not issue title policies and buyers will not buy. In order for a system of private property rights to function properly, there must be stability and certainty as to the ownership of real property.
These rules ensure that the true owner of the property can be identified at any time by an examination of public records, thereby preventing false claims of ownership. A strict set of rules governs how a new link can be created.
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