what is a lis pendens

3 min read 15-01-2025

A lis pendens, Latin for "pending suit," is a legal notice that informs the public about a pending lawsuit that may affect the title of a specific property. It's essentially a warning that a claim or dispute is being made against the property, which could impact its sale or transfer of ownership. Understanding lis pendens is crucial for anyone involved in real estate transactions. This comprehensive guide will explain everything you need to know about lis pendens.

What Does a Lis Pendens Do?

A lis pendens serves as a legal mechanism to protect the potential rights of a plaintiff involved in a lawsuit concerning real estate. By recording a lis pendens against a property, the plaintiff essentially puts the world on notice of the pending litigation. This serves several critical purposes:

Protecting the Plaintiff's Interest: The primary goal is to prevent the property owner from selling or transferring the property before the lawsuit concludes, potentially rendering the judgment worthless.
Public Notice: It acts as a public record, alerting potential buyers, lenders, or anyone else considering a transaction involving the property about the ongoing legal dispute.
Ensuring Judgment Enforceability: If the plaintiff wins the case, the lis pendens makes it easier to enforce the judgment against the property. This might involve a court-ordered sale to satisfy a debt.

Who Files a Lis Pendens?

Typically, a plaintiff (the person bringing the lawsuit) files a lis pendens. This is most common in cases involving:

Foreclosure: Lenders often file lis pendens to protect their interests when seeking to foreclose on a mortgage.
Quiet Title Actions: These lawsuits aim to determine the true ownership of a property, often resolving clouded titles or disputed claims.
Partition Actions: When co-owners of a property disagree on its use or division, a partition action might lead to a lis pendens.
Mechanic's Liens: Contractors or subcontractors who haven't been paid for work done on a property can file a lis pendens to secure payment.
Boundary Disputes: When neighbors have disagreements over property lines, a lis pendens might be filed to protect potential claims.

How to Remove a Lis Pendens

Removing a lis pendens is often dependent on the outcome of the underlying lawsuit. Here are some scenarios:

Successful Resolution: If the case is resolved in a way that removes the underlying claim, the lis pendens is typically dismissed, and a release is recorded.
Plaintiff’s Dismissal: The plaintiff can voluntarily dismiss their lawsuit, leading to the lis pendens being removed.
Court Order: A judge may order the removal of a lis pendens if it's found to be improperly filed or frivolous.
Settlement: The parties to the lawsuit might reach a settlement that includes the removal of the lis pendens.

It's crucial to understand that attempting to remove a properly filed lis pendens without legal grounds can have serious consequences. You should always seek legal counsel when dealing with a lis pendens.

What Happens if a Property is Sold With a Lis Pendens?

If a property with a lis pendens is sold, the buyer acquires the property subject to the outcome of the lawsuit. The buyer is bound by the court's decision. This means the buyer could face losing the property, or they might be forced to pay off any judgments owed. This is why title insurance is crucial when purchasing property with a potential cloud on the title.

How to Check for a Lis Pendens?

Checking for a lis pendens requires searching the public records of the county or jurisdiction where the property is located. Most counties offer online search portals for accessing land records. Alternatively, you can work with a title company; they routinely perform these searches.

Lis Pendens vs. Mechanic's Lien: What's the Difference?

While both affect property ownership, they differ significantly:

Lis Pendens: A general notice of a lawsuit affecting the property's title.
Mechanic's Lien: A specific claim against the property for unpaid labor or materials used in construction or repairs. A mechanic's lien is often followed by a lis pendens.

A mechanic's lien secures a specific debt, while a lis pendens alerts of a broader legal claim against the title.

Conclusion

Understanding lis pendens is essential for anyone involved in real estate. It's a legal tool that can significantly impact property transactions. Always conduct a thorough title search before any real estate purchase or investment to avoid potential complications. If you encounter a lis pendens, consulting with an experienced real estate attorney is highly recommended.