Definition
Lis Pendens
Lis Pendens is a legal term derived from Latin, meaning “suit pending.” It refers to a recorded notice indicating that a lawsuit has been filed concerning a particular piece of land or property, and the outcome of that lawsuit may affect the ownership or title of the said property. This notice essentially serves as a warning to potential buyers or interest holders that the property is undergoing litigation, which could complicate or nullify future transactions involving the property.
Detailed Examples
Example 1: Foreclosure
An unpaid mortgage holder files a foreclosure suit against the property owner who has defaulted on their mortgage payments. To alert others of this pending legal action, the mortgage holder files a ’lis pendens’ notice with the appropriate county record office. Anyone interested in purchasing or engaging with that property will now be aware that the outcome of the foreclosure suit could affect the property’s title.
Example 2: Property Dispute
Two parties are in a legal battle over the rightful ownership of a piece of land. One party files a lawsuit claiming that they have a rightful claim to the property. To ensure potential buyers are cautious, a ’lis pendens’ notice is recorded on the property. This indicates to anyone consulting property records that the land in question is currently under litigation, and its clear title is not guaranteed until the suit is resolved.
Frequently Asked Questions
What does ’lis pendens’ specifically mean?
‘Lis pendens’ translates from Latin to ‘suit pending’. It refers to the legal notice filed in public records indicating that there is an ongoing lawsuit regarding the mentioned property.
How does a lis pendens notice affect the sale of a property?
A lis pendens notice clouds the property’s title, making it nearly impossible to sell or refinance it without addressing the pending lawsuit. Potential buyers are typically hesitant to proceed with any transaction involving properties with a lis pendens notice due to the uncertainty of legal ownership.
Can a ’lis pendens’ be removed?
Yes, a ’lis pendens’ can be removed. This generally happens once the lawsuit is resolved and the court issues an order to cancel or release the lis pendens notice.
Does a ’lis pendens’ expire?
No, a lis pendens does not have an expiration date. It stays attached to the property title until the lawsuit is resolved and the court orders its removal.
Can anyone file a ’lis pendens'?
No, only parties involved in the actual litigation concerning the property can file a lis pendens notice. It is not a tool to be used frivolously or maliciously.
Related Terms with Definitions
Foreclosure
Foreclosure: The legal process by which a mortgage lender or other lienholder seeks to recover the balance of a loan from a borrower who has defaulted on their payments, typically leading to the sale of the property securing the loan.
Title
Title: A legal document proving a person’s right to or ownership of a piece of property.
Legal Notice
Legal Notice: A notice required by law providing specific information to the public or certain individuals about upcoming legal actions or certain events, such as lawsuits or will readings.
Lien
Lien: A legal claim or right against a property, typically used as collateral to satisfy a debt.
Public Records
Public Records: Official documents or pieces of information which are not considered confidential and are kept in records by a government body. These can include real estate records, court records, and various licenses.
Online Resources
- Investopedia: Lis Pendens
- Nolo: Lis Pendens and Real Estate Litigation
- LegalZoom: Understanding Lis Pendens Notices
- Law Dictionary: Lis Pendens
References
- White, Thomas C. Real Estate Law Introduction. Eagle Financial Publications, 2019.
- National Association of Realtors (NAR): Research reports on real estate litigation trends annually.
Suggested Books for Further Studies
- “Real Estate Law” by Marianne M. Jennings
- “The ABCs of Arbitrage: Tax Rules for Investment of Bond Proceeds by Municipalities” by GFOA Staff
- “Property Law For Dummies” by Alan Romero
- “The Complete Guide to Specializing in Urban Real Estate” by Hernando Fernando
