Lis Pendens
Lis pendens (Latin for "suit pending") is a recorded notice that a lawsuit has been filed affecting title to or possession of real property, warning potential buyers that the property is subject to litigation.
Exam Tip
Lis Pendens = "lawsuit pending" notice. Creates cloud on title. Warns buyers property is in litigation. Must be recorded to be effective.
What is Lis Pendens?
Lis pendens is a written notice recorded in public records indicating that a lawsuit involving real property has been filed. It serves as a warning to anyone considering purchasing or lending against the property that it's subject to pending litigation.
Purpose of Lis Pendens
| Purpose | Explanation |
|---|---|
| Public Notice | Warns potential buyers of litigation |
| Protect Rights | Preserves claimant's interest in property |
| Cloud Title | Makes property difficult to sell |
| Priority | Establishes claim priority from filing date |
Common Situations for Lis Pendens
| Lawsuit Type | Example |
|---|---|
| Foreclosure | Lender suing to foreclose mortgage |
| Partition | Co-owners suing to divide property |
| Quiet Title | Resolving ownership disputes |
| Contract Dispute | Breach of purchase agreement |
| Divorce | Marital property disputes |
| Mechanic's Lien | Foreclosing on unpaid work |
Effect on Property
| Aspect | Impact |
|---|---|
| Sale | Difficult or impossible to sell |
| Financing | Lenders won't approve loans |
| Title Insurance | Won't insure clouded title |
| Marketability | Severely impaired |
| Buyer Notice | Buyers take property "subject to" lawsuit |
Lis Pendens Process
- Lawsuit filed - Plaintiff files lawsuit involving property
- Notice prepared - Attorney prepares lis pendens notice
- Recording - Notice filed with county recorder
- Title affected - Property now has cloud on title
- Resolution - Lawsuit concludes or settles
- Release - Lis pendens withdrawn/released
Removing a Lis Pendens
| Method | When Used |
|---|---|
| Expungement | Court orders removal (frivolous claim) |
| Release | Plaintiff voluntarily withdraws |
| Settlement | Parties agree and release |
| Judgment | Court resolves underlying lawsuit |
| Bond | Post bond to release lis pendens |
Lis Pendens vs. Other Encumbrances
| Lis Pendens | Lien |
|---|---|
| Notice of lawsuit | Claim for money owed |
| May or may not result in lien | Already a secured claim |
| Removed when suit ends | Removed when debt paid |
| Affects marketability | Affects title and value |
State Variations
Requirements vary by state:
- Some require court approval to file
- Different expiration periods
- Varying bond requirements for release
Study This Term In
Related Terms
Cloud on Title
Real EstateA cloud on title is any document, claim, lien, or encumbrance that could impair or affect the owner's title to property, making the title unmarketable until resolved.
Quiet Title Action
Real EstateA quiet title action is a lawsuit filed to establish ownership of real property and remove any clouds, claims, or disputes affecting the title, resulting in a court judgment that "quiets" all challenges to ownership.
Encumbrance
Real EstateAn encumbrance is any claim, lien, charge, or liability attached to real property that may diminish its value or burden its title, but does not necessarily prevent transfer of ownership.
Lien
Real EstateA lien is a legal claim against a property that must be paid when the property is sold, serving as security for a debt or obligation.
Foreclosure
Real EstateForeclosure is the legal process by which a lender takes ownership of a property when the borrower fails to make mortgage payments, typically after several months of default.