Libel of title is when someone makes false claims about another person’s property with malicious intent. It can involve disparaging comments about the property or title ownership. To prove libel, the statements must be known to be false, made with malicious intent, and cause actual harm. People can avoid this tort by sticking to factual information and only making complaints when there is a good reason to do so.
Libel of title is a civil wrong in which someone makes untruthful claims about another person’s property with malicious intent. To take a case to court, someone must be able to prove that the statements were known to be false, were made with malicious intent, and caused actual harm. Therefore, someone who loses a real estate deal because a third party falsely claimed the house had termites to drive the price down could sue that party for libel of title.
This concept most commonly emerges in real estate law and can involve disparaging comments about the condition of a property or the clarity of the title itself. It can also emerge in other areas of law; essentially, in any situation involving property, making false claims about or against such property could be considered libel. Just like slander in the sense of a tort against an individual, this civil wrong involves the denigration of reputation.
There are several ways people can commit libel. One method is to question legitimate title ownership by personally claiming title, placing a lien on the title, or otherwise suggesting that ownership of the property is unclear. People may also make disparaging comments or post libelous comments about the property with the aim of causing people to lose interest in a sale or take other actions that could cause harm to the landlord, such as leaving a rental home out of fear that there is something dangerous in the house. .
There is a distinction between comments made in good faith without malicious intent and comments clearly intended to cause harm. There may be cases, for example, where people make claims against title to a property because they sincerely believe they are entitled to it or there is an issue that needs to be clarified. Likewise, if a person does not know that a statement is false when it is made, it is not considered libel of title.
As a general rule, people can avoid being charged with this tort by sticking to factual information and only making complaints or questioning the clarity of the title when there is a good reason to do so. If someone has reason to believe there is a problem with the property, independent confirmation should be sought to determine whether the belief is true, or the person should make very clear the dubious nature of any concerns or concerns expressed. For example, a neighbor who says “I recently treated my house for termites and it’s possible the house next door has them too, although I don’t know for sure,” is not committing slander, just providing factual information.
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