Alaska Release of Lis Pendens
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FAQ
The most common types of encumbrance apply to real estate; these include mortgages, easements, and property tax liens. Not all forms of encumbrance are financial, easements being an example of non-financial encumbrances. An encumbrance can also apply to personal as opposed to real property.
A lien is a legal right or interest of a creditor in the property of another, usually lasting until a debt or duty is satisfied. An encumbrance is a claim or liability attached to property. It includes any property right that is not an ownership interest. A lien is a type of encumbrance.
The lis pendens can be removed once the lawsuit is settled and the court has ruled on an outcome. It might also be resolved on its own if an agreement is reached between the title owner and whoever filed the complaint. If the claim was wrongfully filed, the lis pendens will be expunged.
Because lis pendens are typically recorded in the real property records, the effect of lis pendens is that it puts others on notice that there is a dispute concerning the real property.
Similarly, a lis pendens constitutes an encumbrance against the owner's title to the property.Thus, the recordation of a lis pendens has a chilling effect on any resale or refinancing of the property pending the conclusion of the litigation.
Both a lis pendens and a lien against property represent claims against it. Yet, the lis pendens is not the same thing as a lien. Instead, it is a notification of a potential lien.
A lis pendens may be removed through a motion to expunge. A motion to expunge may be granted if the underlying lawsuit or other court action does not contain a real property claim that has probable validity. The motion will be granted it if is more likely than not that the underlying lawsuit or claim will fail.
A lis pendens may be withdrawn by recording a notice of withdrawal executed by the party who recorded the notice. The notice of withdrawal shall be acknowledged.
The homeowner can enter into a contract to sell the property, but the claim of the person who has filed the lis pendens has to be paid or settled before title can pass free and clear to the buyer. If the house closes, the buyer would ultimately have to accept the outcome of the pending litigation.
