Legal Question in Real Estate Law in California
House title
I am trying to taked care of my late grandfathers estate. I am trying to sell his house. I had a title company do s title search on the property and they said there ws a ''cloud'' over the title. My grandfather bought the house from a private party. When he paid the house off the original owner never filed a release to show it was paid for. This was probably 40 or so years ago. What do I need to do to get clear title on the house? I do not have anything showing it was paid for.
4 Answers from Attorneys
Re: House title
A quiet title suit is one possibility. If the title is otherwise clear, there is a simpler action "to remove cloud" that might save you time and money. The title company you're using should be able to tell you what course of action would result in their willingness, when it is done, to issue a clean title report and sell your buyer a title insurance policy.
California now has a statute directed at clearing title of clouds from what are called "ancient mortgages." It is in the Civil Code, and the most important provisions are set out at sections 882.020, 882.030 and 882.040. You might also want to look back at the general provisions of the Marketable Title Act, which begin at Civil Code section 880.020.
Be sure any attorney working for you on this matter is familiar with these Civil Code provisions and uses them to your best advantage. I don't think the mere existence of these laws is, in itself, sufficient to make the cloud on title go away, but they will sure give you a stronger argument and an easier legal case to get matters corrected in court.
Re: House title
I have nothing to add to my three colleagues answers, except to reiterate that a knowledgeable real estate attorney can help you.
Re: House title
An attorney would need to see the title report in order to review the specific defect(s) that may be "clouding" title at this time. Our Law Firm can legally assist you here.
Re: House title
You may have to file a Quiet Title action in the court. This is a court proceeding where the court makes a legal declaration regarding the title. You may also be able to track down that original owner and get a release that satisfies the title company. It's absolutely amazing what you can find out over the internet about people! I had a similar situation years ago and I tracked some folks back on the chain of title and they were dumbfounded when I phoned them at their Hawaii home where they had retired[laughing]. Any reputable attorney that practices real estate law can help you with the quiet title.