The 2 Faces of Quiet Title

What is Quiet Title? I ask this question to get the reader to think about the two faces of Quiet
Title. First, Quiet Title is an equitable Cause of Action that many homeowners use to identify
who may have an enforceable equitable claim to their title. The reason many homeowners file a
lawsuit for Quiet Title as a cause of action is because they believe there is a cloud on the title to
their property and that this action would quiet any challenges or claims to the title.
Second, Quiet Title is also an equitable remedy. It is a remedy which removes the cloud or
possible encumbrance on the title to real property. The problem is that in order for the
homeowner to receive Quiet Title as relief the homeowner must meet their States statutory
requirements. Most States require in order for Quiet Title to be granted as equitable relief there
cannot be an enforceable equitable claim to title to their property evidenced by an obligation
such as a properly secured mortgage loan security instrument.
Many homeowners filing this action do not truly understand the two faces of Quiet Title as a
cause of action and equitable remedy. What happens many times is that unfortunately the Quiet
Title complaint is remanded to federal court based on diversity and the monetary threshold of
$75,000. Once remanded to federal court, a motion to dismiss is filed by the opposition under
rule 12(b) (6) requesting dismissal for failure to state a claim upon which relief can be
granted. Rule 12(b)(6) is designed to screen out cases where a complaint states a claim based
upon a wrong for which there is clearly no remedy, or a claim which the plaintiff is without right
or power to assert and for which no relief could possibly be granted. . ..'" Port Auth, v. Arcadian
Corp, 189 F.3d 305, 312 (3d Cir. 1999).
One must be careful as not to put the cart in front of the horse. All action[s] must be timely and
Quiet Title as a cause of action should not be done as you come out of the gate. The action that
this writer would look at first would be a determination of the status quo for all interested parties
claiming an enforceable equitable interest to real property. A Declaratory Judgment would move
the courts to address a controversy such as a cloud on title by identifying if rights have been
properly acquired in accordance to statutory requirements of law.
Respectfully, Joseph Esquivel
Mortgage Compliance Investigators
Copyrighted 2014