What action should a seller take to remove a cloud from the title?

What action should a seller take to remove a cloud from the title?

• A. A quitclaim deed
• B. A quiet title action
• C. A mortgage satisfaction
• D. A warranty deed

Answer: (B)

To remove a cloud from the title, the most effective action a seller can take is a quiet title action. This legal proceeding is specifically designed to establish or settle the ownership of a property, thereby clearing any doubts or challenges to the title. When a title is clouded, it may be due to disputed claims, liens, or other encumbrances that can affect ownership rights. By initiating a quiet title action, the seller seeks a judgment from a court that confirms their rightful ownership and negates any competing claims, thus ensuring a clear title. The other options serve different purposes but do not directly address the issue of clearing a cloud on the title. A quitclaim deed transfers any interest the grantor has in the property but does not guarantee that the title is clear. A mortgage satisfaction pertains to the release of a mortgage lien once the loan is fully paid, which is unrelated to resolving ownership disputes. A warranty deed provides a guarantee of clear title to the buyer but does not itself remove existing clouds; it is primarily a tool used in the transfer process rather than a method for clearing title issues.

To remove a cloud from the title, the most effective action a seller can take is a quiet title action. This legal proceeding is specifically designed to establish or settle the ownership of a property, thereby clearing any doubts or challenges to the title. When a title is clouded, it may be due to disputed claims, liens, or other encumbrances that can affect ownership rights. By initiating a quiet title action, the seller seeks a judgment from a court that confirms their rightful ownership and negates any competing claims, thus ensuring a clear title.

The other options serve different purposes but do not directly address the issue of clearing a cloud on the title. A quitclaim deed transfers any interest the grantor has in the property but does not guarantee that the title is clear. A mortgage satisfaction pertains to the release of a mortgage lien once the loan is fully paid, which is unrelated to resolving ownership disputes. A warranty deed provides a guarantee of clear title to the buyer but does not itself remove existing clouds; it is primarily a tool used in the transfer process rather than a method for clearing title issues.