Legal Terms
What Is a Lis Pendens in Real Estate?
Lis pendens is a Latin term meaning 'suit pending.' In real estate, a lis pendens is a formal notice recorded in the public record indicating that a lawsuit involving the property is pending. It alerts potential buyers and lenders that the property's title may be subject to the outcome of litigation.
How Lis Pendens Works
When litigation involving a property is filed, a lis pendens is recorded in the county deed records. Any buyer who then purchases the property takes it 'subject to' the outcome of that lawsuit — meaning the buyer cannot claim ignorance of the dispute. Lis pendens provides constructive notice to the world of the pending claim.
Common situations triggering a lis pendens: foreclosure action, boundary/title disputes between neighbors, partition actions (co-owners forcing a sale), contract breach claims, mechanics liens that escalate to litigation, and divorce proceedings where one spouse files to protect their interest in the marital home.
Lis Pendens FAQ
Can you sell a property with a lis pendens on it?
Technically yes, but practically very difficult. Most buyers won't purchase a property with a lis pendens because the lawsuit could result in the property being taken, title being clouded, or ownership being disputed. Lenders will typically refuse to make loans on such properties. The lis pendens must usually be resolved (case settled, dismissed, or judgment entered) before a clean sale can close.
How is a lis pendens removed?
A lis pendens is removed by: (1) Expungement — a court order removing a frivolous or improper lis pendens. (2) Settlement — the underlying lawsuit is resolved and the lis pendens is released by the filing party. (3) Judgment — the case concludes and the winner either releases or enforces the lis pendens. (4) Bond — in some states, a property owner can post a bond to have the lis pendens released pending trial.
Is a lis pendens the same as a lien?
No. A lis pendens is a notice of litigation, not a lien. A lien gives the lienholder a financial claim against the property. A lis pendens gives notice that the property is involved in a lawsuit — which may or may not result in a lien depending on the outcome. However, both cloud title and impede sale.
How does a title search reveal a lis pendens?
A thorough title search includes a search of the court records (not just deed records) in the county where the property is located. A lis pendens filed in the proper court with the correct legal description should appear in a professional title search. This is one reason title insurance and professional title searches are essential in any transaction.
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