Michigan Real Estate Salesperson Licensing 2025 – Comprehensive 3-Hour PSI Practice Exam to Ensure Success!

Question: 1 / 400

What is the best course of action when a title search reveals a cloud on the title?

Contact the property owner to resolve the issue

Ignore the cloud if it seems minor

Initiate "quieting title proceedings"

When a title search uncovers a cloud on the title, the most effective and appropriate course of action is to initiate "quieting title proceedings." This legal procedure seeks to establish clear ownership of the property by removing any claims or disputes regarding the title. A cloud on the title can arise from various issues, such as liens, judgment claims, or errors in the property's deed history. Addressing these issues is critical as they can affect the ability to sell or finance the property in the future.

Quiet title proceedings allow an individual or entity with a possible interest in the property to present their claims before a court, where a judge will decide on the validity of those claims. Successfully completing this process provides a clear title, thus ensuring there are no legal disputes regarding ownership.

While contacting the property owner to resolve the issue might seem like a proactive step, this approach does not guarantee a solution to the underlying legal problem associated with the cloud. Ignoring the cloud, even if it appears minor, can lead to significant complications down the line, including potential loss of title or financial liabilities. Consulting a real estate agent can provide insights, but this option does not tackle the legal nature of the title cloud directly. Therefore, initiating quiet title proceedings is the appropriate, legally-s

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