When it comes to buying or selling a property, there are many legal terms and concepts that must be understood. One such legal term is lis pendens, Latin for “pending lawsuit.” In real estate law, lis pendens is a legal notice that alerts potential buyers that a claim has been filed on the property. The potential buyer is put on notice that they may be buying a property that faces possible legal action.
What Does Lis Pendens Mean for Property Owners and Buyers?
For buyers, lis pendens can be a warning sign that the property they’re looking to buy may have a pending legal action that could jeopardize their purchase. They may have to wait out the legal battle or be forced to negotiate any potential legal fees that may come from it. In real estate law, lis pendens has the power to prevent a property from being sold or leased in any way, at least until the legal matter is resolved.
For property owners, lis pendens can create a whole new set of headaches. They may find themselves in a legal battle with a tenant or other party. They must make sure to prepare adequately and follow all legal procedures. Moreover, they must move quickly to address any legal issues, as lis pendens may hinder a sale or make it impossible to rent or lease the property until everything is resolved.
Examples of Lis Pendens in the Real World
A lis pendens can be filed by landlord-tenant disputes, boundary disputes, foreclosure lawsuits, quiet title actions, or any other real estate disputes. A tenant may file a claim against a landlord for safety violations or other breaches of contract. Similarly, an owner may file a suit against a tenant for not paying rent or causing a nuisance on the property.
In other instances, lis pendens may be used by creditors to put a property sale on hold while they attempt to collect on a debt. The creditor must start a foreclosure lawsuit to reach a resolution. Meanwhile, a homeowner may use lis pendens to challenge title to a property in a quiet title action after boundary disputes create an issue.
The Bottom Line
Lis pendens can be a major issue to consider when buying or selling a real estate property. An experienced real estate lawyer can help navigate any legal issues that arise from lis pendens. Understanding lis pendens and how it affects your potential purchase or sale is essential to making a successful transaction.