What Happens After Lis Pendens Is Filed?

What Happens After Lis Pendens Is Filed?

A lis pendens is an official notice to the public that a lawsuit involving a claim on a property has been filed. It is a legal tool used to protect the interests of the parties involved in the lawsuit and to give notice to potential buyers that the ownership of the property is in dispute. The filing of a lis pendens can affect the sale price and potential buyers are often advised to stay clear of properties with a pending litigation.

Lis pendens can be used in various situations, including divorce cases, mortgage default or foreclosure, and contract disputes. Filing a lis pendens requires following specific procedures, and it can only be removed once the lawsuit has been settled. It is important to consult with a real estate lawyer to properly understand the process and implications of filing a lis pendens.

Key Takeaways:

• The filing of a lis pendens serves as an official notice that a property is involved in a legal dispute.
• It can negatively impact the sale price and make it difficult to sell the property.
• A lis pendens can only be removed once the lawsuit has been settled through a final judgment or a notice of dismissal.
• Consulting with a real estate lawyer is crucial to navigate the process and understand the implications of filing a lis pendens.
• Potential buyers are often advised to exercise caution when considering properties with a lis pendens.

How Lis Pendens Works

A lis pendens, also known as a “suit pending,” is a legal notice that alerts potential homebuyers to ongoing litigation involving a specific property. When a lis pendens is filed, it is recorded in the county land records and serves as constructive notice to anyone interested in purchasing the property. This notice can have significant effects on the sale price and the ability of the owner to sell the property.

The lis pendens remains in effect until the lawsuit is settled, which can take months or even years. During this time, potential buyers should be aware of the lis pendens and the potential impact it may have on their ability to secure a mortgage and their financial obligations regarding the property. Lenders may be hesitant to provide financing for properties with pending litigation, and buyers may face challenges in obtaining a loan or negotiating favorable terms.

In summary, a lis pendens is a legal notice that warns prospective buyers of ongoing litigation involving a property. It can negatively impact the sale price and make it difficult for owners to sell their property. Potential buyers should be aware of the lis pendens and its potential effects on their ability to secure financing and fulfill their obligations as property owners.

How to File and Remove a Lis Pendens

Filing a lis pendens involves a specific process that must be followed. First, I will need to file a lawsuit related to the property with the county clerk. The lawsuit should specifically involve real property, such as land or buildings. Once the lawsuit is pending, I can proceed to record the lis pendens in the county land records. This will officially attach the notice to the property’s title.

It is highly recommended to work with a real estate lawyer throughout this process to ensure the correct preparation and filing of the lis pendens. They will ensure that all necessary documents are properly completed and submitted. This will help to avoid any complications or delays that could arise due to errors or omissions.

Removing a lis pendens can only be done once the lawsuit has been settled. This can be achieved through a final judgment or a notice of dismissal. It’s important to closely monitor the progress of the lawsuit and promptly withdraw the lis pendens once it is no longer needed.

Failure to properly file or remove a lis pendens can result in legal consequences. This includes the potential expungement of the notice and the possibility of being held liable for attorney’s fees and costs. Therefore, it is crucial to follow the correct procedures and seek professional guidance throughout the filing and removal process.

What Happens After Lis Pendens Is Filed?

After a Lis Pendens is filed, it serves as an official public notice that a lawsuit involving a claim on a property has been filed. This means that any potential buyer must assume any litigation that exists pertaining to the property. If a new buyer purchases the property, they inherit the responsibility of the lawsuit; the sale of the property does not prevent the plaintiff from seeking redress via litigation.

The filing of a Lis Pendens can adversely affect the sale price or the possibility of a sale since any pending litigations are typically unfavorable for the owner. It also provides constructive notice, or a warning, to prospective homebuyers that the ownership of a property is in dispute and litigation is pending.

In some jurisdictions, like Florida, a Lis Pendens protects the plaintiff in a lawsuit from any intervening liens on the property filed after the Lis Pendens. However, property owners may not be able to sell, obtain financing, or obtain title insurance until the Lis Pendens is removed.

A Lis Pendens does not prevent the actual sale of real estate, but due to the ubiquitous use of title insurance by prospective purchasers to insure title on real estate sales, it can make the property less attractive to potential buyers.

Once a Lis Pendens is recorded, any party, or any nonparty who has an interest in the affected real property, may bring a motion to have the Lis Pendens expunged. After a Lis Pendens is expunged, a party may not file another Lis Pendens on the property without leave of court.

If the party burdened by the Lis Pendens wins and gets judgment entered in their favor, then the Lis Pendens must be expunged unless the trial court is willing to find its own decision will probably be reversed on appeal.

The filing of a Lis Pendens can have significant implications for the sale and purchase of a property. It serves as a warning to potential buyers about pending litigation and can affect the ability of the property owner to sell or finance the property. However, it can be removed or expunged under certain circumstances, such as the resolution of the lawsuit or a court order.