“Lis pendens” is Latin for “suit pending.” It's a public notice filed in county land records alerting potential buyers or lenders that a lawsuit involving a property’s title or ownership is underway. Once recorded, it “clouds” the title, meaning any transferee takes the property subject to the outcome of the suit.
The legal foundation for a lis pendens comes from state statutes and court rules. By recording a notice of lis pendens, a plaintiff preserves the claim against the property, deterring transfers or encumbrances that could defeat the eventual judgment.
When a lis pendens is recorded, title searches will reveal the pending suit. Title companies typically refuse to insure clear title until the notice is cleared, and most buyers and lenders will insist on resolving the dispute before proceeding.
A buyer or seller may file a lis pendens when one party alleges wrongful denial of closing or contract violations, ensuring their interest in the property is protected during litigation.
Lenders often record a lis pendens immediately after a borrower defaults on mortgage payments. This preserves the lender’s claim through the foreclosure process and warns other creditors or buyers.
Disagreements over property lines, partition actions among co-owners, or competing title claims—such as in divorce or probate—are classic triggers for a lis pendens.
Unlike a Mechanics’ Liens, which secure payment for labor and materials, a lis pendens secures the outcome of a lawsuit affecting ownership or title. Both cloud title, but mechanics’ liens arise from construction disputes, while lis pendens arises from broader legal claims.
Anyone with a recorded interest or pending claim—contracting parties, lenders, or spouses in divorce—can file a lis pendens to protect their rights.
Buyers and investors must review title records for liens and lis pendens notices during due diligence to avoid acquiring disputed property.
Agents and paralegals should flag any lis pendens on preliminary title reports and advise clients on potential risks or required remedies.
Lenders and underwriters will typically require lis pendens to be cleared before funding. Even landlord-investors filing their own claims must understand procedural requirements to enforce or defend against a lis pendens.
A recorded lis pendens stalls sales and refinances because buyers and lenders fear taking title subject to litigation.
Title insurers exclude coverage for claims tied to active lis pendens. Clearing the notice is often a precondition to obtaining a standard policy.
Disputes can hold up escrow, tie up earnest-money deposits, and push closing dates out weeks or months.
Parties must weigh legal costs, potential bond requirements, and the likelihood of success on the underlying claim before proceeding.
Mechanics’ liens secure unpaid construction work; judgment liens secure court money judgments. Both record against title but differ from a lis pendens, which preserves the substance of pending litigation.
Tax liens (by government entities) and HOA liens (by associations) attach for unpaid taxes or fees. They typically allow sale or foreclosure but do not hinge on underlying lawsuits as a lis pendens does.
Of all recorded claims, a lis pendens is the clearest signal that the property’s ownership or title is in active judicial dispute and may not be transferred free of that dispute.
Some states allow the property owner to post a bond, ensuring payment if the plaintiff prevails, in exchange for discharge of the notice.
Resolution of the litigation—by settlement or dismissal—automatically clears the lis pendens from the public record.
Owners can file a motion arguing the filer lacked probable cause or failed to state a valid claim. If successful, the court orders expungement.
Procedures vary by jurisdiction but often include statutory deadlines for challenge, hearings on expungement motions, and filing fees.
Order a full title report early to identify any lis pendens or other clouds on title.
Include clear contingencies allowing withdrawal or renegotiation if a lis pendens cannot be cleared by closing.
Negotiate endorsements or escrow holdbacks for pending disputes or require removal as a closing condition.
Consult an attorney at first notice of a lis pendens to evaluate removal strategies, bonding requirements, or settlement options.
Yes. Most buyers, lenders, and title companies refuse to proceed until the lis pendens is resolved or bonded off.
It remains until the underlying lawsuit is resolved, the notice is expunged, or a bond is posted (if permitted by statute).
Standard title policies exclude coverage for disputes tied to a lis pendens. Special endorsements or exceptions may apply post-resolution.
Costs include court filing fees, attorney’s fees, bond premiums, and potential settlement payments.
You can cancel under most inspection or title-contingency clauses, renegotiate terms, or insist the seller clear the notice before closing.
Check your county recorder’s website or state judiciary portals for local lis pendens forms, filing requirements and fees.
Look for state-specific real estate practice guides, law firm whitepapers on lis pendens, and title-search software with live recording feeds.
If you face a lis pendens—either as filer or property owner—seek qualified counsel early to navigate bond requirements, expungement motions, settlements, or defense strategies.
