The costs to clear a title can range from a few thousand dollars to tens of thousands of dollars. Estimating the cost can be difficult because many factors can affect the title clearance process, causing costs and timetables to vary widely. Although no one case of a title clearance is exactly like the next, there are a few common steps and costs. The following list includes action steps that can add to the title clearance costs. Actual costs will depend on the complexity of title history, geographic location, professional rates, and cooperation among co-owners. If liens have been placed against the property, owners will incur additional costs to clear the liens. Shopping around is key. It is wise to contact a few service providers and compare quotes from at least two professionals before selecting a service provider.

Common Costs to Clear Title

Every title clearance process will look different, but heirs should follow a few common steps or actions. The cost to complete these steps varies and depends on the complexity of the case and who is completing the action. Typically, the more complex the issues, the more expensive the action will be.

Conducting a Title Search

A title search is an investigation into the ownership history of land. It is a way to verify that the land is free of liens, easements, encumbrances, encroachments, restrictions, or any other title defect that may “cloud” the title. A title company, attorney, or mortgage lender typically conducts the title search. The cost can range from around $75 for a simple search to $1,500 for a complex one.

Performing a Title Review

A review of a title search verifies ownership and identifies any liens, encumbrances, or other title defects. A title company or real estate attorney performs a title review. The title review is an additional cost and ranges from a few hundred dollars to several thousand dollars, depending on the complexity of the title history.

Securing Title Insurance

Title insurance is a type of insurance policy that covers title issues or claims on a property not discovered in the title search. There are two types of title insurance policies. An owner’s title policy protects the owner from claims to ownership made by another party. A lender’s title policy only protects a lender who has a mortgage lien on the property. Generally, a title policy costs from .04 percent to 1 percent of the property value. For example, if a property is worth $100,000, the title insurance could cost between $40 and $1,000.

Deed of Reconveyance

A deed of reconveyance is a document transferring title from a mortgage lender to the borrower when the loan has been paid in full. The deed of reconveyance is recorded in the county clerk’s property records to show that the borrower owns the property free and clear of the mortgage. It does not indicate ownership. It only indicates that there is no mortgage lien on the property. The recording fee of $10 to $15 is paid to the county clerk’s office. It is prepared by the lender holding the mortgage or an attorney. If it is prepared by an attorney or a title company, there may be an associated fee.

Executing a Quitclaim Deed

A quitclaim deed is a document that quickly transfers property ownership. There are different types of deeds. A quitclaim deed makes no guarantees or warranties as to the title of the property. This means that property transferred by quitclaim deed could be subject to liens, ownership, or boundary disputes. They can even transfer absolutely zero ownership interest to the new owner if the previous owner has no ownership interest. The quitclaim deed cost can vary. The document can be free to execute if prepared by oneself. If an attorney prepares it, fees can range from $100 to $600.

Filing a Quitclaim Deed

Once a quitclaim deed has been prepared and executed, it must be filed in the county probate court where the property is located. The cost associated with recording a quitclaim deed includes the filing and recording fee, starting at $10 for the first page and $3 for each additional page. There may be additional index transfer fees from $0.50 to $500. Fees can vary by county.

Quiet Title Action

A quiet title action is a legal process to secure and enforce the rights that come with a complete and clear property title interest. Title defects can be cured, and ownership disputes can be settled through this action.

An uncontested quiet title action is when an action is filed with no ownership dispute. A contested quiet title action involves one or more other people or entities that claim to have a different or competing ownership interest in the same property.

Costs associated with a quiet title action include court costs, filing fees, and attorney’s fees if an attorney is engaged to handle the action. A contested quiet title action is more expensive than an uncontested action. Uncontested quiet title actions can cost from around $1,500 to $5,000.

For current cost estimates and ranges for common steps to clear see aces.edu/go/heirsproperty.

Back to Heirs Property in Alabama

Portia Johnson, Extension Specialist, Assistant Professor, Human Sciences; Ryan Thomson, Assistant Professor, Rural Sociology; Adam Rabinowitz, Extension Specialist, Associate Professor, Agricultural Economics; and Katie Keown, Visiting Professor, Agriculture Law, all with Auburn University

Revised July 2024, Heirs Property in Alabama, HE-0852