What percentage of Quiet Title Actions succeed?

[Michael Wentzel]

So I didn't know what what a Quiet Title Action was until yesterday. I am under-contract to purchase two properties in Colorado from a seller in California. I was going to pay to close at a Title company here in Colorado to have the Title insurance and the confidence that they had looked for all possible liens. Everything was going well until I mentioned to the Title company that the seller obtained ownership of the properties through tax liens. The Title company then said they can not insure the Title or close it for nine years!

The Title company then mentioned I could do a Quiet Title Action to "clear" the title. This is a court order put forth by attorney to settle the ownership of the property. My understanding is the cost is about $2000 and the timeline is about 2-3 months. Six months after this is done, the Title company would be willing to do a close, which would allow me to sell the property  or get a mortgage on it if I wanted (I think).

In my research, I read one place that 90% of Quiet Title Action succeed in clearing the Title. Does anyone have extensive experience in this area? Is that percentage accurate?

My tentative plan is to do a Title Search in hopes of digging up any possible red flags. Then purchase the properties without Title insurance or closing at a Title company. Next, pursue the Quiet Title Action on both properties. Finally, renovate once the Quiet Title Action is completed. Any thoughts on this plan.

Thanks.

Mike

[Jay Hinrichs]

the reasons most tax liens need quiet title is the insurers worry that someone with a interest in the property was not properly notified.  so when they do the quiet title they usually have to dig deep and serve or notice anyone who may have been missed.. if the notifications are fine its a simple process.

the ones I am doing in SC can take 6 months to forever.. depends on who needs to be notified.. 2k is super cheap to do this.