Legal Definitions - notice of lis pendens

A notice of lis pendens is a formal legal document filed in public records, typically with the county recorder or registrar of deeds, to inform everyone that a lawsuit is pending concerning a specific piece of real estate. The term "lis pendens" is Latin for "suit pending."

The primary purpose of filing a notice of lis pendens is to provide constructive notice to potential buyers, lenders, or other interested parties that the property's title or ownership is currently subject to a legal dispute. This means anyone who acquires an interest in the property after the notice is filed is considered to have knowledge of the lawsuit and will be bound by its ultimate outcome, even if they were not directly involved in the original legal action. It essentially "freezes" the property's marketability by warning others that their interest could be jeopardized by the pending litigation.

• Example 1: Specific Performance in a Real Estate Contract

  Imagine a situation where a buyer, Sarah, has a signed contract to purchase a house from a seller, John. Before the sale closes, John receives a higher offer and tries to back out of the agreement. Sarah decides to sue John for "specific performance," asking the court to force him to complete the sale as originally agreed. To prevent John from selling the house to the new, higher bidder while the lawsuit is ongoing, Sarah's attorney files a notice of lis pendens. This notice, recorded against the property, alerts any potential new buyers or lenders that there's a legal dispute over the house's ownership. If John were to sell the house to someone else despite the notice, that new buyer would take the property subject to Sarah's lawsuit and could lose their interest if the court rules in Sarah's favor.

• Example 2: Dispute Over Inherited Property

  Consider a family where three siblings, Alice, Ben, and Carol, are disputing the rightful ownership of their deceased parents' vacation home. Alice believes she is the sole heir according to an unrecorded will, while Ben and Carol claim the property should be divided equally among all three. As they prepare to go to court, Alice files a notice of lis pendens on the vacation home. This action prevents Ben or Carol from selling, mortgaging, or otherwise transferring their supposed share of the property to an outside party until the court determines the true ownership. Any third party attempting to acquire an interest in the home would be informed of the ongoing legal battle and would be bound by the court's final decision regarding its rightful owner.

• Example 3: Foreclosure Proceedings

  A bank, "Secure Lending Corp.," initiates a lawsuit to foreclose on a commercial property because the owner, "Apex Businesses Inc.," has defaulted on its mortgage payments. As part of the foreclosure process, Secure Lending Corp. files a notice of lis pendens with the county recorder. This public filing serves as a warning to anyone considering buying the property or lending money against it that a legal action is underway that could result in Secure Lending Corp. taking ownership. It ensures that if Apex Businesses Inc. tries to sell or refinance the property during the foreclosure proceedings, any new buyer or lender would be aware of the bank's superior claim and would acquire their interest subject to the outcome of the foreclosure lawsuit.