Florida Real Estate Title Actions
What are Real Estate Title Actions?
Real estate title actions are legal claims regarding the proper ownership (or legal title) of real property. For example, a real estate title action may be a:
Quiet Title Action - A property owner seeks a judgment or judicial order stating the true owner(s) of the property. These are often requested by title companies to clear up a cloud in the title.
Deed Reformation Action - A property owner requests the court to correct an error in a deed.
Slander of Title Action - Occurs when an individual publishes a false statement that disparages another person’s real property, or title to property, causing a financial loss to that individual due to the negative impact on the property’s value.
What is Real Estate Title?
When someone owns “title” to land in Florida, it means that they have some form of legal interest in that real property. Typically, the person or entity who owns title for the property is the owner of the property, though this is not always the case.
What is the Title Process?
Florida requires that title be “recorded” with the state. This way it is clear who owns a particular parcel of property. Anyone can freely access who owns title on a parcel of land, as well as the chain of title (i.e., who previously owned title for that parcel). How property is transferred from one owner to another is the title process.
What is a Chain of Title?
The chain of title is the historical record of who has owned that parcel of land. A chain of title will date back as far as the records can go. The county’s clerk office will keep these real estate records. These records are also available electronically and can typically be searched through the clerk of court website.
Why is Title Important?
Under Florida law, the person who “holds” title to land is seen as the owner of that property. The owner of that land holds rights over the land and/or any buildings on that land. Without title to a property, you cannot sell that property.
Who Can Hold Title to Real Property in Florida?
Almost anyone can hold title to Florida property. There is no requirement that a person be a Florida resident or even a United States citizen to hold title in Florida. In fact, you do not even have to be a living person to hold legal title to property in Florida! Entities can hold legal title, such as local, state, and federal governments. Corporations and partnerships can also hold title.
What are Some Different Ways That Title can be Held?
There are different levels of legal interest that can be bestowed based on the type of title held. Below are a few different ways that a person may hold title:
Sole Ownership—Your name is the only name on the title of this property. It is yours alone.
Shared Ownership—Your name is not the only name on the title of this property. The title of this property is shared by you and another person. This means that your ownership interest in this property is shared. There are several forms of shared ownership, though the most common forms of joint ownership are “Tenants in Common” or “Joint Tenants with the Right of Survivorship.”
In Trust—Your name is on the title of this property as the trustee of a specific trust. You have rights and responsibilities associated with this property, but you are ultimately acting for the benefit of the trust’s beneficiaries. Your ownership interests in the property are limited, as is what you can do with this property.
What is a “Cloud on Title”?
A cloud on title can arise in several different ways. However, what it boils down to is this: something exists that may invalidate or impair a title to property or make the title doubtful. That something could be a document, claim, unreleased lien, or an encumbrance. A cloud on title may be necessary for marketable and/or insurable title. A cloud on title can also reduce the value of the property.
How Does Someone Find Out About a Cloud on Title?
A cloud on title is typically located during a properly conducted title search on a property. This search will show any unresolved claims and encumbrances on the property title. If you have ever bought land and/or a home, a property title search should have been performed after accepting the real estate offer. However, sometimes an attorney spots a title issue when examining a deed for other purposes.
How do you “Clear Title” in Florida?
It depends! There is no “one size fits all approach” to clearing title. Each instance is fact specific. Some are also much easier to remove than others.
The first step to clear title is to identify the reason for the cloud. Once the cause has been identified, it may be as simple as reaching out to the person and/or entity related to the cloud. The following are examples of obvious, relatively simple clouds:
If the cloud is due to a filing error, the Clerk of Court may be contacted in the jurisdiction that the title was filed to resolve the issue and thereby clear title.
If the cloud is a result of a typographical error in the legal description of the property, a simple, non-adversarial quiet title action or deed reformation claim could be filed to procure a judgment correcting the error, thereby clearing title. Alternatively, a new corrective deed can be issued by the grantor.
If the cloud is due to a Contractor’s Lien, the contractor can be contacted. Contractor’s Liens are typically a result of an outstanding payment, so it may be as simple as paying the contractor who will subsequently remove the lien. Similar liens, such as mortgage or tax liens, can be resolved in a similar fashion.
It is often possible to clear title without the need for adversarial litigation! However, if the reason for the cloud is nonobvious, or the cloud is a result of a contested lien, boundary dispute, or fraud, it will likely not be a simple matter to resolve. In all instances, hiring an attorney is likely advisable.
Contact a Trust Attorney for a Free Consultation
PTM Trust and Estate Law is happy to answer your questions about trust amendment, modification, or termination. Please call 352-554-5576 or contact us online to schedule a free consultation. If you do not live near Gainesville, then we will be happy to schedule a free phone meeting instead. We help clients all throughout the state of Florida.