What Is a Lis Pendens?
A Lis Pendens, originating from Latin as “suit pending,” is a formal notice alerting the public to a property under litigation. When a lawsuit involves a property claim, a Lis Pendens is filed, indicating that a potential buyer must acknowledge any ongoing legal disputes linked to the property’s ownership.
In cases where a bank sues a lot owner and the property is sold to a new buyer, the new owner assumes the responsibility of the lawsuit. The sale of the property does not exempt it from the pending litigation, making Lis Pendens a key element in highlighting contingent liabilities tied to real estate transactions.
Key Takeaways:
- A Lis Pendens serves as a public notice indicating that a property is subject to an ongoing legal dispute or claim.
- It applies when a claim directly relates to the property, and property owners typically bear the legal responsibilities attached to the property.
- Commonly associated with divorce or foreclosure cases, Lis Pendens can significantly impact property transactions.
How Lis Pendens Work
Lis Pendens, often denoted as “lis pend,” provides constructive notice to potential property buyers that a property’s ownership is disputed and entangled in ongoing litigation. By filing a Lis Pendens, an individual or entity safeguards their claim to the property’s title until the lawsuit concludes, indicating a clouded status affecting sales and transactions.
Once a lawsuit is resolved, the Lis Pendens is lifted; however, given the prolonged nature of legal proceedings, caution is advised when engaging with such properties to avoid complications.
When a Lis Pendens Is Used
Lis Pendens is commonly deployed in real property disputes, with prominent use in divorce, mortgage default/foreclosure, and contract conflicts.
Divorce
In divorce cases involving property division, a Lis Pendens is filed when ownership remains unsettled, inhibiting property sales under legal scrutiny.
Mortgage Default/Foreclosure
Lenders commonly use Lis Pendens to signal property foreclosure due to delinquent borrowers, safeguarding their interests in the proceeding.
Contract Disputes
Lis Pendens can emerge in home sale conflicts, blocking property transfers amidst legal challenges, particularly when disputes arise between potential buyers and sellers.
Certain states allow homeowners associations to file Lis Pendens for enforcing property liens, complicating property sales in non-compliance scenarios.
How to File a Lis Pendens
To file a Lis Pendens, a pending lawsuit specifically involving real property is required. This process varies by state but entails filing with the county clerk and recording the Lis Pendens in county land records to attach it to the property title. Compliance with state-specific regulations avoids potential expungement of the notice.
Due to the complex nature of Lis Pendens filings, seeking assistance from a real estate attorney is advisable to ensure accurate and effective documentation. While it is possible to self-draft the notice, legal intricacies demand precise wording and adherence to procedural norms, minimizing the risk of procedural errors and maintaining the validity of the notice.
Frequently Asked Questions
What Is the Purpose of Lis Pendens?
Lis Pendens serves as a formal notification mechanism highlighting ongoing claim disputes or legal actions concerning a specific property, safeguarding the interests of involved parties and notifying potential buyers of associated risks and liabilities.
What Does Discharge of Lis Pendens Mean?
A discharge of Lis Pendens implies the cessation of any claims or legal actions against a property, signaling the resolution or removal of pending litigations.
Who Issues Lis Pendens?
Lis Pendens can be issued by any party with a legitimate claim on a property, typically filed with the county Clerk of Court pertaining to an ongoing lawsuit directly involving the property.
What Is Meant by Lis in Law?
Lis in Latin translates to “suit,” and “pendens” denotes “pending,” collectively signifying a pending lawsuit or legal action, encapsulating the essence of a Lis Pendens.
The Bottom Line
Lis Pendens underscores the legal complexities surrounding property transactions by notifying stakeholders of ongoing legal claims. Filing and adherence to procedural norms are essential in preserving the validity and relevance of Lis Pendens in property dealings.
While Lis Pendens can be filed by interested parties, obtaining professional legal guidance ensures filing accuracy and compliance with legal standards, minimizing risks of procedural errors and potential dispute escalations.