Quiet Title Actions: The “Reset Button” for Title

What is a Quiet Title Action?

At its core, a Quiet Title action is a lawsuit (brought under MCL 600.2932 in Michigan) filed specifically to “quiet” any challenges or claims to a property’s ownership.

The goal is to obtain a court order declaring that the plaintiff is the sole, rightful owner of the property and that all other claims are null and void. Once the judge signs the judgment and it is recorded with the Register of Deeds, the “cloud” is removed, and the title becomes “marketable”—meaning it is now safe to insure and sell.

When is a Quiet Title Action Necessary?

While our team uses every creative tool in our creative kit to resolve issues without litigation, some scenarios require the authority of a circuit court. Common reasons include:

• Tax Foreclosure Purchases: In Michigan, if you or your client purchases a property at a county tax sale and the foreclosure proceedings were not properly carried out by the county, most title underwriters will not issue a policy until a Quiet Title action is completed.¹ This ensures the previous owner’s rights were legally extinguished.
• The “Ghost” Mortgage: A prior lender was paid off years ago, but the bank never filed a formal “Satisfaction of Mortgage.” If the bank no longer exists or the records are lost, a court order is the only way to remove that lien.
• Boundary and Survey Disputes: If a neighbor claims ownership of a portion of the backyard due to a misplaced fence or an old, inaccurate survey, a Quiet Title action settles the line forever.
• Missing Heirs and Probate Errors: If a previous owner died and the property was transferred without a clear probate process, unknown heirs could theoretically emerge. This action “silences” those potential future claims.

The Process: A Step-by-Step Breakdown

To commence a Quiet Title action, the first step is engaging an attorney that specializes in these matters.² A typical Quiet Title action follows these phases:

1. The Title Investigation: We perform an exhaustive search of public records to identify every person or entity that could possibly have a claim.
2. Filing the Complaint: A formal lawsuit is filed in the Circuit Court of the county where the property is located.
3. Service and Notice: All potential claimants (defendants) must be legally served with a summons. If they cannot be found, Michigan law allows for “Notice by Publication” in a local newspaper.
4. The Waiting Period: Defendants typically have 21 days to respond. In many “technical” title cases, no one responds, leading to a Default Judgment.
5. The Judgment: If the court is satisfied with the evidence of ownership, the judge issues a Final Judgment quieting title.
6. Recording: The judgment is recorded with the County Register of Deeds, officially cleaning the property’s public record.

Reality Check: Timing and Costs

For a Realtor or Lender, managing client expectations is key. Here is what the current landscape looks like in Michigan:

• Timing: While every court docket is different, a standard, uncontested Quiet Title action in Michigan typically takes 60 to 120 days. If the case is contested (someone fights back), the timeline can extend significantly.
• Cost: For a routine, uncontested action, costs usually range between $1,500 and $5,000, including attorney fees, filing fees (approximately $150 in Michigan), and costs for service or publication. Again, if the case is contested, costs may be meaningfully higher.

The Advantage of Expert Leadership

A Quiet Title action is not a “boilerplate” procedure. It requires a knowledgeable attorney who understands the process and is familiar with the applicable court system.

Although we do not handle Quiet Title actions directly at Avalon Title Group, our attorney-led team understands the process and can work hand-in-hand with any attorney to get them done. If you require a Quiet Title action and do not know where to begin or which attorney to contact, reach out to our team and we will be happy to guide you toward your goal.

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Footnotes:

1. When dealing with properties purchased in a tax sale, title agencies will typically conduct a FOIA review to ensure that the foreclosure proceedings were properly carried out. There is an alternative to the FOIA review, called a tax certification. For more information on these options, contact a member of our team.
2. If you require a Quiet Title action but do not have a trusted attorney, our team can make a referral.