A lis pendens literally means that litigation is pending. It tells the
public that a lawsuit affecting the property is in progress and that any
judgment awarded in that legal action will have priority as of the date of
the lis pendens. Some lawyers file a lis pendens automatically when they
file a suit affecting title to real estate. The lis pendens creates a cloud
on the title and can prevent a potential sale of the property from taking
place.
A property owner’s first remedy if a lis pendens is found, is to post a
bond. If the court determines that the lis pendens was filed in bad faith,
or that it does not affect title or possession to the property, then the
court may expunge the lis pendens without the posting of a bond. You can
take title subject to the lis pendens, but you would risk possible future
judgments against the property.
You will find the lis pendens in the preliminary report together with the
liens and easements which may be listed. Read through the preliminary report
carefully to determine which liens or items can stay on the property and
which items must be paid or settled prior to closing. Once closed, the items
not taken care of will remain on the property.
More Title & Escrow Topics:
Ending A Co-Ownership With A Quitclaim Deed
Exceptions To Coverage In Your Title Insurance Policy
Closing Escrow When You Are Out of Town
Coverage And Types Of Title Insurance Policies
Published: September 24, 1999
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