Notice of Lis Pendens and Release of Lis Pendens - Lis Pendens
What is a Lis Pendens? Lis Pendens Real Estate
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? Lis Pendens Notice
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.
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:
- 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.
- 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.
- 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.
- 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.
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