Notice of Lis Pendens and Release of Lis Pendens

What is a Lis Pendens?

Lis pendens is an official written notice stating that litigation concerning a specific situation is pending. Lis pendens is a Latin term which means that a suit is pending. A lis pendens is regarded as constructive notice of a pending lawsuit. Once a lis pendens is filed, the public is considered to have notice of the lawsuit.

What is a lawsuit pending or lis pendens in the context of real estate?

In real estate practice, a lis pendens is an official notice that litigation is pending with reference to real estate, for instance, concerning the title of the property. A notice of lis pendens alerts a potential buyer of property or a lender that litigation exists relating to the property. Lis pendens does not create a lien, but it operates as a cloud on the property title until the suit is determined. Also, a lis pendens notice does not stop or nullify a property transfer, it only makes a property transfer subject to the outcome of a lawsuit.

Lis pendens is a public notice of pending lawsuit and is filed with the clerk of the court and is recorded in the same county recorder's office where the title of the property is recorded. The county recorder's office will register a lis pendens on a written application by the person filing the lawsuit.

A lis pendens notice is filed when a real property goes into foreclosure. If a mortgagor feels that a foreclosure is essential, filing a lis pendens stops any efforts to sell the property to avoid foreclosure. An investor who takes a second mortgage or a purchaser who buys foreclosed real estate may search in the public records for a list of properties that are about to foreclose.

A real estate investor who purchases a pre foreclosure property may search public records for any pending litigation. A pre foreclosure status is assigned to a property when a mortgagor files a notice of default on the property. The default notice will state that the mortgagor will proceed with a lawsuit if the debt is not repaid. It is called a preforeclosure property, as the original homeowner continues to be the property owner.

Top Questions about Notice Of Lis Pendens And Release Of Lis Pendens

  • Can I buy a house with lis pendens?

    While it is possible to buy a house with a Notice of Lis Pendens filed against it, it comes with risks. The existence of a lis pendens indicates that there are unresolved legal disputes, which could affect your ownership of the property. Buyers should proceed with caution and seek legal advice to understand the implications of such notices. To assist with these inquiries, US Legal Forms offers informative resources that can guide you through the process.

  • What is the purpose of a lis pendens?

    The main purpose of a Notice of Lis Pendens is to provide a warning to potential buyers and creditors about a pending legal action involving the property. This notice helps prevent a sale of the property during litigation, ensuring parties are aware of the ongoing disputes. It serves as a protective measure, safeguarding the rights of the individuals involved in the lawsuit. If you're looking for more detailed information on this process, consider exploring resources available through US Legal Forms.

  • Are lis pendens public records?

    Yes, a Notice of Lis Pendens is public information. This means anyone can access these records to understand any legal disputes related to a property. Public access to lis pendens helps protect buyers by ensuring they are informed before making any investment decisions. To obtain official copies or more information, you can utilize the services offered by US Legal Forms.

  • What is the difference between a lien and a lis pendens?

    A lien is a legal claim against a property that ensures payment for a debt, while a Notice of Lis Pendens is a public notice that there is a pending lawsuit affecting the property. In essence, a lien secures a financial obligation, whereas a lis pendens signals to potential buyers that there may be legal disputes that could affect ownership. Understanding both is crucial for anyone involved in real estate transactions. You can find resources on how to navigate these concepts effectively on the US Legal Forms platform.

  • What does release of lis pendens mean?

    A release of lis pendens indicates that the notice has been formally canceled, freeing the property from the constraints of ongoing litigation. Once released, the notice no longer impacts the property’s title or marketability. If you face a situation requiring a release, using the tools and resources from US Legal Forms can help simplify your approach.

  • What does a discharge of lis pendens mean?

    A discharge of lis pendens means that the legal claim affecting the property has been resolved or withdrawn, effectively lifting the cloud on the title. This status allows the property to be freely sold or transferred again. Clarifying your rights after a discharge is crucial, and platforms like US Legal Forms can assist you in understanding this process.

  • What is the difference between notice of pendency and lis pendens?

    The terms 'notice of pendency' and 'lis pendens' are used interchangeably in many instances, but they can hold slight nuances depending on the jurisdiction. A notice of pendency serves the same function as a lis pendens, indexing pending litigation affecting property rights. Knowing this can help you interpret legal documents related to property more accurately.

  • What is the purpose of lis pendens?

    The main purpose of a lis pendens is to provide public notice that a legal dispute involves a particular property. It effectively prevents the property from being sold or transferred while the litigation is pending. This mechanism protects the interests of the party initiating the legal action by informing potential buyers or lenders of the existing claim.

  • What is the difference between a lis pendens and a notice of lis pendens?

    Although the terms are often used interchangeably, a 'lis pendens' typically refers to the document itself, while 'notice of lis pendens' emphasizes the notification aspect. The notice informs third parties that there is ongoing litigation affecting the property in question. Utilizing these terms appropriately can clarify legal situations.

  • What is another name for a lis pendens?

    A lis pendens is also commonly referred to as a 'notice of pending lawsuit.' This term signals to interested parties that legal action has been initiated concerning a property. Understanding both terms can help you navigate property transactions more effectively.

Tips for Preparing Notice of Lis Pendens and Release of Lis Pendens

Real estate deals are one of the most difficult operations due to small property specifics that most people don’t know to even think about. Let’s dive much deeper into some details and streamline the process of work with real estate forms with the following tips:

  1. Check the legal rights of each party. Be sure that all the parties have required capabilities to make decisions about property before preparing a document.
  2. Use state-specific real estate contracts. Rules for documents differ between states. Get the appropriate Notice of Lis Pendens and Release of Lis Pendens form in our collection that includes over 85 000 regularly-updated legal templates.
  3. Determine all wanted terms. Bringing a Notice of Lis Pendens and Release of Lis Pendens into force is usually a stumbling block that leads to lots of misunderstandings and lawsuits between parties. Make starting dates clear from day one.
  4. Document property condition. Make photos or describe in writing the state of a house or flat and check if everything is in order on the date of releasing it to the counter party.
  5. Take full advantage of modern technologies. Save time utilizing the built-in integrations with a comprehensive PDF editor and advanced eSignature solution. Benefit from our Premium subscription to prepare, check, modify, and sign your sales agreements with no printing, manual filling, or scanning paper copies.