Slander of title

From CEOpedia | Management online

Slander of title occurs when someone maliciously or intentionally denies or casts doubt on another's legal ownership of a property. As a result of it, the property's owner may incur financial losses.

Generally, this is considered to be an unlawful act. It simply means a situation in which a person deliberately publishes a false statement about the property and intends to discourage a third person from dealing with the slandered person. For instance, a car dealer would have a lot of difficulties in attracting customers after competitors published a piece of information that the dealer's stock included stolen cars (R. Miller, G. Jentz 2007, p. 122).

Elements of slander of title

Slander of title consists of three essential elements. These are:

  1. False statements concerning a person's ownership of property,
  2. Intent to hinder or destroy the owner's use of the property,
  3. Communication (publication) of nontruth to third parties (C. J. Okrent 2014, p. 240).

False statements concerning a person's ownership of property

Slander of title is committed by someone who makes false statements about another's ownership of property. It usually happens when the title of an individual's property is falsely challenged by another person. Issues involving it mainly relate to real estate and the filing of false liens. In particular, companies that provide services to customers may file liens against the customers' real estate when customers did not pay for the services. As a result of it, the property can not be leased or sold because the lien is attached to the title of the land.

There can also occur a situation when a business menaces to file a lien against a customer who paid everything on time. It means that the lienholder has brought the integrity of the landowner's title into disrepute and it may be a false suggestion to the other people that the landowner has not paid debts to the lienholder. Thus, a falsely filed lien can impair the landowner's ability to use the property, even when the lienholder illegally filed the lien against the landowner (C. J. Okrent 2014, p. 240).

Intent to hinder or destroy the owner's use of the property

The intention of making false statements about ownership is to disrupt the owner's use of the relevant property. It is especially characteristic of a situation in which the lienholder falsely filed the lien in order to hold the landowner back from selling or using the property without paying the supposed debt (C. J. Okrent 2014, p. 240).

Communication (publication) of untruth to third parties

The false statements about property ownership are generally passed to third parties. When such a piece of information is communicated to the other people, it then becomes a public matter and everybody can have access to it (C. J. Okrent 2014, p. 240).

Examples of Slander of title

  • Spreading false rumors or statements about the title of a property. For example, a neighbor who maliciously tells a potential buyer that the owner does not have a valid deed to the property.
  • Publishing false and misleading information about the title of a property. For example, a newspaper article that states the owner does not have a legal right to the property.
  • Filing a lawsuit or other legal action with the intent to cast doubt on the title of a property. For example, filing a claim in court alleging that the land was taken illegally.
  • Making false representations about the ownership of a property in a transaction. For example, a real estate agent telling a potential buyer that they do not have a valid deed to the property.

Limitations of Slander of title

Slander of title is a civil wrong, and it can cause serious financial damage to the owner of the property. However, there are certain limitations to the legal recourse available for slander of title:

  • The person making the false claims must have done so maliciously or with intention to harm. If the slander of title was made honestly, without any malicious intent, it cannot be considered as slander of title in a legal sense.
  • The person making the false statement must have done so publicly. If the false statement was made only to the owner of the property, it cannot be considered as slander of title.
  • The owner of the property must have suffered financial losses as a result of the false statement. If the false statement did not cause any actual financial losses, it cannot be considered as slander of title.
  • The person making the false statement must have been negligent in making the statement. If the person made the false statement in good faith, without any negligence, it cannot be considered as slander of title.

Other approaches related to Slander of title

Slander of title is a form of defamation which occurs when someone maliciously or intentionally denies or casts doubt on another's legal ownership of a property. Other related approaches to the issue are:

  • Trespass to chattels: A type of tort that occurs when someone interferes with the rightful possession of someone else’s personal property. The interference must be intentional and must cause some damage to the property.
  • Conversion: This is a type of tort that occurs when someone wrongfully interferes with the rightful possession of someone else’s personal property. The interference must be intentional and must be serious enough to amount to a taking of the property.
  • Defamation: This occurs when someone makes a false or defamatory statement about another person or entity, which harms their reputation.

Overall, slander of title is a form of defamation which refers to the malicious denial or casting doubt on another's legal ownership of a property. Other related approaches to the issue include trespass to chattels, conversion, and defamation. All of these approaches can result in financial losses for the property's owner.


Slander of title — recommended articles
Warranty of title — Prohibitory injunction — Vitiating factor — Clear title — Material misrepresentation — Constructive fraud — Spendthrift clause — Limited warranty deed — Special power of attorney

References

Author: Klaudia Nycz

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