We’re explaining lis pendens and what it could mean for you.
What is a lis pendens? It’s a Latin term describing a pending legal action preventing people from buying or lending a property. As an example, in an HOA, everyone is suing because the copper piping wasn’t done correctly, and it needs to be repaired before the building can be sold. Another example is a flipper client we had where the seller was getting antsy and tried to sell to another party, and our client filed a lis pendens for breach of contract to prevent them from selling to anyone else.
“The notice of withdrawal is a court-ordered document that removes a lis pendens from a property.”
If someone decides to contest the lis pendens, the person who filed must identify three things to validate it:
- The lis pendens must affect the title or property’s right of possession.
- It must show that it was filed with proper purpose and in good faith. That means it wasn’t filed maliciously; an attorney can help you prove this one.
- You need to show the lis pendens would be successful in trial.
If you aren’t able to prove all three of those things, the court can get the lis pendens removed from the property. The notice of withdrawal is a court-ordered document that removes a lis pendens from a property.
We don’t want a HELOC or mortgage to pass on to the incoming buyer of a property. Our job in title is to ensure that anything that could affect or harm the buyer is taken care of, and lis pendens and legal actions are included in that. Title makes sure buyers or borrowers are free and clear of any judgments or liens. If you see a lis pendens on your preliminary report, you need to get that taken care of as soon as possible.
Contact us via phone or email, and we can help you with lis pendens. We’d also be glad to answer your questions about lis pendens or any other title matter. We look forward to speaking with you soon.