When a lis pendens is filed, any future transfers of the property are affected by the pending action if it were to be awarded. A lis pendens puts a “cloud” on the title. It doesn't prevent you from selling your home, but it does make the title uncertain, which could affect your ability to sell.
LIS PENDENS – A notice recorded in the official records of a county to indicate that an action affecting a particular property has been filed in either a state or a federal court.
A “lis pendens notice” is a notice recorded in a real property's chain of title and is designed to enable interested third parties to discover the existence and scope of pending litigation affecting the title to or asserting a mortgage , lien , security interest , or other interest in real property .
A lis pendens effectively clouds the title to the property described in the notice and impedes a subsequent sale or encumbrance of the property until the litigation is resolved or the lis pendens is expunged.
The doctrine requires more than a mere allegation of a pending suit; it requires proof the prior case is the same, the parties are substantially the same, and the relief requested is the same. This three-pronged identity test must be strictly applied when a party seeks to dismiss a claim under the doctrine.
Yes, a property with a Lis Pendens can still be sold, but most buyers and lenders will be reluctant to proceed with the transaction until the dispute is resolved. A Lis Pendens creates a “cloud” on the property's title, making it difficult to transfer ownership.
Remember that a lis pendens is a notice of a pending lawsuit. Because a lien is not a lawsuit in and of itself, a lis pendens isn't generally a requirement of filing a lien claim.
File a request with the court to remove the lis pendens. Provide the legal reasons the lis pendens is improper, offering proof, for example, that the lis pendens affects real estate that is not connected to the litigation. If the lawsuit is frivolous and merely intended to harass the property owner, offer proof.
In a case specified in section 6501, the notice of pendency shall be filed in the office of the clerk of any county where property affected is situated, before or after service of summons and at any time prior to judgment.
The following parties are entitled to mechanics lien rights in New York: direct contractors, subcontractors, material suppliers, equipment lessors, laborers, design professionals, and landscape gardeners who performs labor or furnishes materials for the improvement of real property.