What is a lis pendens?
A lis pendens is a written notice that alerts potential buyers and lenders that a property is involved in a lawsuit. The Latin term literally means “lawsuit pending,” and it serves as a public warning that someone has filed a legal claim affecting the property’s ownership or title.
What Does a Lis Pendens Do?
When someone files a lis pendens, it creates what’s known as a “title cloud” on the property. This recorded notice effectively freezes the property’s marketability because it warns anyone interested in the property that they could inherit a legal problem if they proceed with a purchase or loan.
The notice of pending action serves several important purposes:
- Protects the rights of someone claiming an interest in the property
- Prevents the property owner from selling or refinancing without addressing the lawsuit
- Ensures potential buyers are aware of ongoing legal disputes
- Preserves the status quo while the court case proceeds
Common Reasons for Filing a Lis Pendens
Various legal disputes can lead to someone filing a real estate lawsuit notice. The most common situations include:
- Divorce proceedings – When spouses disagree about property division
- Contract disputes – When a buyer claims the seller breached a purchase agreement
- Mechanic’s liens – When contractors or suppliers haven’t been paid for work on the property
- Boundary disputes – When neighbors disagree about property lines
- Fraud claims – When someone alleges the property was obtained through deception
How a Lis Pendens Affects Property Owners
If a lis pendens appears on your property, you’ll face significant limitations. Most buyers won’t purchase a property with this type of recorded notice because they don’t want to inherit someone else’s legal problems. Banks and mortgage companies typically refuse to lend money on properties with a pending lawsuit.
This situation can be frustrating for property owners, especially if they believe the lawsuit lacks merit. The property essentially becomes unmarketable until the issue is resolved, either through court proceedings or a settlement between the parties.
Filing a Lis Pendens
To file a notice of pending action, someone must first have an active lawsuit that directly involves the property. The process typically involves:
- Filing a lawsuit in court that affects the property’s title or ownership
- Preparing the lis pendens document with required information
- Recording the notice with the county recorder’s office where the property is located
- Serving a copy to the property owner
Not just anyone can file this type of notice. The person must have a legitimate legal claim related to the property itself, not just a general monetary dispute with the owner.
Removing a Lis Pendens
Property owners have several options for removing a lis pendens:
- Settle the lawsuit – Resolve the underlying dispute through negotiation or mediation
- Win the case – If the court rules in your favor, the lis pendens becomes invalid
- File a motion to expunge – Ask the court to remove the notice if it was improperly filed
- Post a bond – In some cases, posting a cash bond can release the property
Important Considerations
A lis pendens is a powerful legal tool that can have serious consequences. Filing one without proper grounds can lead to liability for damages. Property owners who ignore a valid notice risk losing their property rights or facing additional legal complications.
If you encounter a lis pendens as either a property owner or potential buyer, consulting with a real estate attorney is essential. They can review the specific circumstances, explain your rights, and help determine the best course of action.
Understanding how a lis pendens works helps protect your interests in real estate transactions. Whether you’re buying, selling, or simply owning property, knowing about this legal notice ensures you’re prepared if one appears on a property you’re involved with.
