Definition
Lis pendens is a legal notice filed in public records indicating that a property is subject to a pending lawsuit. This serves as a warning to potential buyers, lenders, and investors that the property may have legal claims against it, which could impact ownership or future transactions.
Explanation
Lis pendens, which means “lawsuit pending” in Latin, is typically filed when a dispute involves title ownership, foreclosure, divorce settlements, or property inheritance. The notice does not prevent a sale but alerts interested parties that a legal challenge exists.
Common Reasons for a Lis Pendens Filing:
- Foreclosure Proceedings – A lender files lis pendens when suing a homeowner for mortgage default.
- Divorce or Probate Disputes – A spouse or heir files a claim to assert ownership rights.
- Breach of Contract – A buyer sues a seller for backing out of a purchase agreement.
- Unpaid Contractor Disputes – A contractor files lis pendens when claiming non-payment for work.
Lis pendens can cause serious issues for sellers, as most lenders and title companies refuse to proceed with a sale until the dispute is resolved.
How a Lis Pendens Is Removed:
- Court dismissal if the claim is found invalid.
- Settlement or payment of the disputed debt.
- Filing of a motion to remove it, proving the case is without merit.
Example
A homeowner is in a dispute with a contractor over an unfinished home renovation. The contractor files lis pendens in court, making it impossible for the homeowner to sell or refinance the property until the case is resolved.