Say someone dies and leaves behind land without a will or other legal document. Sometimes, things can get, well, a little "cloudy." That's what a clouded property title is. Essentially, there's a gray or black cloud over the land or other real estate that makes it unclear who owns it if no heirs are involved.

So, what happens next? 

Without a will, the state can decide who inherits what, often leading to disputes and disagreements. These complications can pile on the pressure, especially when grieving a loved one, so you'll want to know exactly where you stand. Members of the REALTORS Land Institute have seen wild things happen when wills and the transfer of property titles are unclear.

To avoid complicated situations, read on to learn more about how to clear a clouded property title and transfer it to you.

Clouded Property Titles, Explained

A property with a cloud on its title means it can't be transferred for whatever reason. This normally happens when someone dies but doesn't have a will, leaving all kinds of questions about who really owns their land or other property.

Properties can become clouded in other circumstances. Say someone selling their land defaults on their mortgage, and their lender starts the foreclosure process. If the person doesn't resolve the foreclosure properly, a title can become cloudy. 

Normally, the courts have to decide what happens with clouded property titles. This can be expensive, time-consuming, and seriously stressful. The problem is that a judge or other legal authority, essentially someone you don't know, is making decisions about land that could be rightfully yours.

What Causes a Clouded Property Title?

Some of the situations where a property title becomes clouded include:

• Someone without a will dies and leaves behind land, raising questions about who owns it. Only 32% of Americans currently have a will.
• Unpaid debts or liens on land can lead to disputes about ownership.
• Boundary disputes, unknown easements, and other legal disagreements may result in a clouded property title. Sometimes, people don't uncover these issues until years after purchasing land.
• Fraudulent acquisition or possession of a property title means it might become cloudy, and it could take years to resolve a sticky situation like this.

How to Clear a Clouded Property Title

Clearing a clouded property title all depends on what made it cloudy in the first place. Take fraud, boundary disputes, unpaid debts, probate issues, and other problems. Court action is sometimes the only way to resolve the problem at hand, which is a route you might not want to go down.

Apart from really simple cases, you probably won't be able to clear a clouded property title yourself. This is where a good real estate attorney comes into play. The right professional can help in the following ways:

• Conducting title searches for the clouded land to find out more about ownership and other legal interests
• Removing any liens on a property by setting up payment plans with creditors or disputing any legal claims
• Filing quiet title actions, which are legal proceedings that can remove someone from a property title if they don't have legal ownership rights
• Executing deeds of reconveyance, which are documents that transfer a property title from a lender to someone else
• Executing quitclaim deeds, which are documents that transfer a property title from one person to another, such as someone who doesn't have rights to own land to someone who does

A real estate attorney can also help you understand the often-complicated legal process and potential outcomes of a court case.

Legal Remedies for Clouded Property Titles

Even if a case involving a clouded property title doesn't end up in court, using a real estate attorney might get rid of all the legal headaches associated with a situation like this. For example, a professional can:

• Negotiate with people with an interest in a clouded property, such as inherited land, and reach an agreement that suits you.
• Bargain with creditors when a lien exists on land and potentially lower any amounts owed.
• Settle an agreement out of court that transfers a property title to your name.

How Much Does It Cost to Clear a Clouded Property Title?

It all depends on the particular circumstances. However, expect to pay the following costs when dealing with a clouded property:

• Property title search fees, which can sometimes cost hundreds of dollars
• Costs for filing legal documents with involved parties or the courts, such as quitclaim deeds and deeds of reconveyance
• Attorney fees

While some costs are inevitable, clearing a clouded property title could financially work out for you in the long run. For instance, clearing a title could mean you gain ownership of inherited land that's legally yours.

Why You Should Clear a Clouded Property Title Now

Handling clouded property titles can not only be expensive but incredibly stressful, especially after a loved one passes away. However, the right legal professionals will help you overcome this challenge and ensure you get the land you deserve.

To find out more about what you should do in this kind of situation, find an RLI member and land consultant in your area.