What is a Lis pendens
A Lis pendens is a legal notice that is filed when two parties are involved in a lawsuit over the ownership of real property. The notice is typically filed with the court by the plaintiff, and it serves to notify interested parties that there is a pending lawsuit that could affect the title to the property. In most cases, a Lis pendens will remain on record until the lawsuit is resolved. If the plaintiff prevails in the suit, the court will issue a judgment that will be recorded on the property’s title. This will serve as notice to any subsequent buyers or lenders that there is a lien on the property. However, if the defendant prevails in the suit, the Lis pendens will be removed from the record and the property will be clear of any legal claims.
What happens when a Lis pendens is filed
When someone files a Lis pendens, also known as a notice of pendency or lis pendens, they are essentially staking a claim to a piece of property. The notice is recorded with the county clerk’s office and serves as public notice that there is a pending legal action related to the property. This typically happens when there is a dispute over ownership or other rights to the property. By recording the notice, all potential buyers are put on notice that there may be issues with the title to the property. As a result, the value of the property may be reduced and it may be more difficult to sell. In some cases, the court may order the property to be sold in order to satisfy the claims of the parties involved. Ultimately, a Lis pendens can have a significant impact on the ownership and value of a piece of property.
How to file a Lis pendens
A Lis pendens is a legal notice that is filed with the court to indicate that there is pending litigation on a property. The notice serves to warn potential buyers that the property is involved in a lawsuit and that they could be at risk of losing their interest in the property if the lawsuit is decided in favor of the plaintiff. In order to file a Lis pendens, the plaintiff must have a verified complaint against the defendant, and the complaint must involve title to, or possession of, real property. The notice must also include a description of the property, as well as the names of the parties involved in the lawsuit. Once it has been filed, it will remain in effect for as long as the litigation is pending.
The benefits of filing a Lis pendens
The purpose of the Lis pendens is to provide notice to potential buyers or interested parties that there is pending litigation which may affect the title to the property. This notice allows potential buyers to make an informed decision about whether or not to proceed with the purchase, and it also serves as a way to protect the interest of parties who are already involved in the lawsuit. In some cases, the court will also order that a Lis pendens be recorded with the county recorder’s office, which provides even further notice to potential buyers and interested parties. While there are some restrictions on who can file a Lis pendens, overall it is an important tool that can help protect the interests of all parties involved in a real estate transaction.
The effect of the notice
The notice is filed with the court and states that the property in question is currently the subject of litigation. Once the notice has been filed, the property cannot be sold or transferred until the case has been resolved. This gives the parties involved in the lawsuit time to settle their dispute without having to worry about the property being sold out from under them. If the parties are unable to reach a resolution, the court will ultimately decide who owns the property. In either case, a Lis pendens ensures that both parties have a fair chance to resolve their dispute without having to worry about losing the property.
How long a Lis pendens lasts
The Lis pendens remains in effect until the lawsuit is resolved, at which point it is removed from the public record. If the case goes to trial, the Lis pendens may be extended until the verdict is reached. In some cases, the court may order the Lis pendens to be removed if it finds that it was filed improperly. Generally speaking, a Lis pendens gives potential buyers or lenders notice that there is pending litigation over the property in question, and as a result, they may be reluctant to enter into a transaction. For this reason, many sellers choose to wait until the Lis pendens is removed before listing their property for sale.
What to do if you receive a Lis pendens
If you receive a Lis pendens, it means that someone has filed a lawsuit against you claiming an interest in the property you own. The Lis pendens is a notice that is recorded with the county recorder’s office and serves to inform any potential buyers that there is a pending legal action against the property. If you are selling the property, the buyer will most likely not proceed with the sale unless the matter is resolved.
If you are not selling the property, the Lis pendens does not have to be recorded but it will become public record if it is not. You should consult with an attorney to determine how to respond to the Lis pendens. In some cases, it may be possible to have the Lis pendens removed from public record.
Can a Lis pendens be removed
Yes, a Lis pendens can be removed if the person who filed it can show that it was filed improperly. This may be done by showing that the property is not involved in the lawsuit or that the party who filed the notice does not have an interest in the property. If the notice was improperly filed, the court may order it to be removed from public record.
A Lis pendens can also be removed if the parties involved in the lawsuit reach a settlement. Once the lawsuit is resolved, the Lis pendens will be removed and the property can be sold or transferred.
Lastly, a Lis pendens may be removed if the court finds that it is no longer necessary. For example, if the property is no longer in dispute, the court may order the Lis pendens to be removed.
The difference between a Lis pendens and a notice of pendency
In real estate law, a notice of pendency and a lis pendens are two terms that are often used interchangeably. However, there is a subtle but important distinction between the two. A notice of pendency is simply a notice that there is pending litigation involving the property in question. A lis pendens, on the other hand, is a notice that not only is there pending litigation, but that the property itself is subject to that litigation.
In other words, a lis pendens is a notice of pendency that specifically names the property as being part of the dispute. As a result, a lis pendens creates a legal cloud on the title of the property, making it difficult to sell or borrow against the property until the litigation is resolved. For this reason, it is generally advisable to file a lis pendens only when absolutely necessary.