An encumbrance is something that may prevent a buyer from taking the legal title or possession of the property. Most encumbrances are recorded at the county recorder's office.

Sometimes a piece of property can be sold subject to a mortgage or other financial lien. A buyer can check whether a piece of property has a lien or mortgage through the county recorder's office. Additionally, a title insurance company should inform you of any such encumbrances on the property.

 A buyer may not have enough cash up front to pay the entire purchase price for a piece of property. A financial institution may be able to lend the buyer the purchase money and attach a mortgage to the property. For more information on real estate financing.

In real estate terms, title is the right of ownership and possession of a particular property, so to quiet title means to take legal action to settle a title dispute. A title dispute can arise when there are conflicting claims of ownership over a piece of property. Therefore, in a quiet title action, a court proceeding removes a "cloud" or possible encumbrance on the title to real property to firmly establish in law ownership of the property. Thus, this action would "quiet" any challenges or claims to the title.

When Does A "Cloud on Title" Occur?
A quiet title action usually occurs when there is a cloud on title, most likely from:

◾Recording problem (such as an old lease that was never recorded or failure to clear title after payment of a mortgage)
◾Error in the description of the property which may cast doubt on the amount of property owned
◾An easement existed for years but was never properly recorded

How Do You Go About Taking Action to Quiet Title?
To initiate an action to quiet title, the property owner must do all of the following in their local Court:
◾Identify the full description of the property to be "quieted"
◾Name anyone who might have an interest in the described property as a defendant to the lawsuit, and include supporting facts why they have a claim.
◾Notice must be given to all potentially interested parties

If the court finds that the party seeking to quiet title actually owns the title, the court will grant a quiet title judgment, which provides that the party has legal and good title. A quiet title judgment may and should then be recorded in the county recorder's office.

Should I Consult an Attorney if I Find that I Have a Cloud on My Title?
Because conflicts in property ownership may lead to possible litigation, it is wise to consult a property attorney. An experienced attorney can examine your title, title search results and title insurance policy, to ensure that you are protected against possible clouds on title.