A lis pendens, Latin for "litigation pending," is a formal notice filed with a court that indicates a lawsuit affecting a specific property is underway. Understanding the implications of a lis pendens filing is crucial for both buyers and sellers of real estate. This post will detail what happens after a lis pendens is filed, addressing common questions and concerns.
What is the Impact of a Lis Pendens Filing?
The primary effect of a lis pendens is to create a cloud on the title of the property. This means that the property's title becomes encumbered, making it difficult or impossible to sell or refinance without addressing the underlying lawsuit. Potential buyers are generally wary of properties with lis pendens filings because the outcome of the lawsuit could significantly affect the property's ownership and value. The legal action could result in liens, judgments, or even the loss of the property.
How Long Does a Lis Pendens Remain in Effect?
The duration of a lis pendens varies depending on the jurisdiction and the outcome of the underlying lawsuit. It typically remains in effect until the lawsuit is resolved, whether through settlement, judgment, or dismissal. Once the case concludes, the lis pendens is typically expunged (removed) from the property records. However, the impact of the lawsuit on the property's title may persist even after the lis pendens is removed.
Can I Sell My Property with a Lis Pendens?
Selling a property with a lis pendens is possible, but it presents significant challenges. Potential buyers will be hesitant due to the uncertainty surrounding the outcome of the lawsuit. The sale will likely require disclosure of the lis pendens and may necessitate obtaining court approval or negotiating specific terms to protect the buyer's interests.
What Happens if the Lis Pendens is Wrongfully Filed?
A wrongfully filed lis pendens can be a serious issue. The property owner can challenge the lis pendens in court, seeking to have it removed if it was filed improperly or without sufficient basis. This often requires demonstrating that the lawsuit is frivolous, lacks merit, or doesn't legitimately involve the property. Successfully challenging a wrongful lis pendens can help clear the cloud on the title and protect the owner’s property rights.
What are the potential outcomes of the lawsuit?
The outcome of the underlying lawsuit will ultimately determine the fate of the lis pendens and the property. Possible outcomes include:
- The plaintiff prevails: The court may rule in favor of the plaintiff, potentially leading to a lien on the property, a court order for sale, or other actions that affect the property’s ownership or value.
- The defendant prevails: If the defendant wins the lawsuit, the lis pendens will be removed, and the cloud on the title will be lifted.
- Settlement: The parties involved may reach a settlement that resolves the dispute, resulting in the lis pendens being removed.
How Can I Protect Myself From a Lis Pendens?
While you can't entirely prevent a lis pendens from being filed against your property, you can take steps to minimize the risk. These include:
- Maintain accurate property records: Ensure all documents related to your property are up-to-date and accurate.
- Address legal issues promptly: Deal with any potential legal issues before they escalate into lawsuits.
- Consult with a real estate attorney: If you anticipate potential legal issues or have been served with a lawsuit, seek legal counsel immediately.
This information is for educational purposes only and should not be considered legal advice. Consult with a qualified legal professional for advice specific to your situation. The complexities surrounding lis pendens filings and their impact can significantly vary based on local laws and the specifics of each case.
