A Lis Pendens Notice is a legal document used to inform the public that a lawsuit is pending regarding a specific property, indicating that there is an encumbrance affecting that property. This form serves to protect the interests of parties involved by making third parties aware of potential claims against the property. Unlike other real estate documents, a Lis Pendens Notice acts as a warning to potential buyers or lenders about possible legal issues that could affect their rights in the future.
You should use a Lis Pendens Notice when you are initiating or are involved in a legal dispute regarding real estate. This form is applicable in cases such as foreclosure actions, disputes over property ownership, or claims related to easements. Filing a Lis Pendens Notice ensures that all parties interested in the property are aware of the legal proceedings, and it helps prevent the property from being sold or mortgaged without notice of the pending claim.
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The recording of a lis pendens creates a cloud on title which notifies interested parties of the pending claims against the subject property. The presence of a recorded lis pendens can make it nearly impossible to finance, refinance or sell the subject property until the lis pendens has been removed.
The doctrine of lis pendens literally means pending suit, and lis pendens notices are the machinery whereby a party with an unrecorded or unperfected claim to real property can put third persons interested in the property on notice of the claim or interest.
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.
Lis pendens provides constructive notice, or a warning, to prospective homebuyers that the ownership of a property is in dispute and there is litigation pending. Lis pendens can only be filed if a claim is related specifically to the property.