Lis Pendens in Real Estate
Lis pendens is a Latin term meaning “suit pending.” In real estate, it refers to a public legal notice recorded in county land records to inform potential buyers, lenders, or investors that a lawsuit involving the property is ongoing and may affect its title or ownership.
What Lis Pendens Does
- Clouds the title, making it difficult to sell or refinance the property.
- Serves as a legal warning that a dispute exists over ownership or interests.
- Binds future buyers or lienholders to the outcome of the pending litigation.
When It’s Commonly Used
| Scenario | Purpose |
|---|---|
| Foreclosure cases | To secure a lender’s legal claim while the case is in progress |
| Divorce or partnership disputes | To prevent either party from selling or altering the property |
| Contract or title conflicts | To enforce sales agreements or settle boundary/title disagreements |
Practical Implications
- Title companies will flag a lis pendens during searches and may refuse to issue title insurance until it’s resolved
- Most buyers will avoid the property, reducing its marketability and value
- Even if a property sale proceeds, new owners take it “subject to” the pending litigation outcome
Frequently Asked Questions
1. Is a lis pendens the same as a lien?
No. A lis pendens is a notice of litigation, not a financial claim like a lien. But it can still block or delay a sale.
2. How is a lis pendens removed?
It’s typically removed after the lawsuit is resolved or dismissed. A court order or release document is then recorded.
3. Can I buy a property with a lis pendens?
Technically, yes. But it’s risky—you would inherit the legal uncertainty and could lose money or ownership if the plaintiff wins.
4. Does every lawsuit involving real estate require a lis pendens?
No. It’s only filed if the case could affect title or property rights, like foreclosure, partition, or enforcement of a sale.
5. Do lis pendens rules vary by state?
Yes. Each state has its own laws on how and when a lis pendens can be filed and challenged. Always consult a local real estate attorney.
Capabilities