close up shot of wooden placard with sale sign in front of modern cottage
Share on Facebook
Share on X
Share on LinkedIn
By Stephen Schahrer
Attorney

Putting your house on the market and waiting for it to sell can be a long, exhausting process. Attracting the right buyers at the right price points can be difficult, especially when the market is not in your favor. While already daunting enough, this process becomes even more challenging when the property you are trying to sell does not have a clean title. “Clouds” on a title can be caused by a variety of different things, such as the existence of an encumbrance, lien, or some other legal claim against the title. When a cloud on your title exists, it can be nearly impossible to sell your property. At the very least, it can create a substantial delay or cause issues at closing.

In some cases, the “clouds” on a title have been placed on the property as a result of proper legal process. In others, “clouds” can appear as a result of the ill-intent of a third party. This article explores a remedy a seller may use should some ill-intent be suspected in relation to the seller’s property. This remedy involves the seller filing a lawsuit with a cause of action for “Slander of Title” against the person or entity that placed the “cloud” on the property.

Florida case law sets out the requirements of a Slander of Title cause of action in Van Loan v. Heather Hills Prop. Owners Ass’n.[1] The plaintiff must show that:

  1. “[A] defendant published or communicated a falsehood to a third party”;
  2. “[T]he defendant knew or reasonably should have know[n] that the falsehood would likely result in others not to deal with the plaintiff”;
  3. “[T]he falsehood did materially and substantially induce others not to deal with the plaintiff”; and
  4. “[T]he falsehood resulted in damages that were proximately caused by the published falsehood.”

Essentially, someone must have lied about something and that lie created a “cloud” on the seller’s property. That person must have made the statement intending to, and knowing that it would, cause somebody else to not engage in business with the seller. This lie must have actually caused somebody to choose not to conduct business with the seller, and the seller must be able to prove that he or she was damaged as a result of the lost business.

Should the above elements be proven, the seller can recover damages for loss that he or she suffered as a result of the lie. Additionally, the seller can recover his/her/its attorney’s if the seller prevails in the action.[2]

Understandably, dealing with a cloud on your property’s title can be difficult to navigate, whether the cloud was created by proper legal process or by the false statement of another. In either case, you need a team of confident and experienced lawyers to help clear the title and/or to pursue any claims against a wrongdoer intending you harm. If you are facing a cloud on your title which you believe was improperly placed against your property, can schedule a consultation with one of our attorneys by calling (239) 330-1494.

[1] Van Loan v. Heather Hills Prop. Owners Ass’n, 216 So. 3d 18, 24 (Fla. Dist. Ct. App. 2016).

[2]  See Susman v. Schuyler, 328 So. 2d 30, 32 (Fla. Dist. Ct. App. 1976).

* * * * * * * * * *

THIS BLOG IS INTENDED FOR GENERAL INFORMATION PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE. THE READER SHOULD CONSULT WITH KNOWLEDGEABLE LEGAL COUNSEL TO DETERMINE HOW APPLICABLE LAWS APPLY TO SPECIFIC FACTS AND SITUATIONS. BLOG POSTS ARE BASED ON THE MOST CURRENT INFORMATION AT THE TIME THEY ARE WRITTEN. SINCE IT IS POSSIBLE THAT THE LAWS OR OTHER CIRCUMSTANCES MAY HAVE CHANGED SINCE PUBLICATION, PLEASE CALL US TO DISCUSS ANY ACTION YOU MAY BE CONSIDERING AS A RESULT OF READING THIS BLOG.

About the Author
Mr. Schahrer has a diverse professional background including experience working for the Florida State Legislature, the United States Marshals Service headquarters in Washington D.C., and the local non-profit, St. Matthew’s House. He joined Boatman Ricci as a Law Clerk in 2016 and worked with the Firm throughout his time in Law School and then joined the Firm as an Associate Attorney. In his spare time, Mr. Schahrer enjoys training and teaching Martial Arts and spending time with his family in beautiful Naples, FL.